Ofwat’s 2023-24 report: businesses must act now to unlock the full potential of water deregulation.
The latest Ofwat report highlights some encouraging signs of progress in the water sector, but the pace of change remains frustratingly slow. This stagnation means that businesses, both large and small, are missing out on valuable opportunities to unlock the full benefits of deregulation.
While customer switching has held steady at 3.4% of all SPIDs, consistent with the pattern seen since 2021-22, this year brought a notable shift in the supplier landscape. For the first time, new market entrants acquired more customers than incumbent retailers, signalling a rise in competition and greater choice for business customers. This evolution creates significant potential for cost savings, especially for smaller businesses, who now have more opportunities to secure better pricing.
Change in the water market: 2017 vs 2024
The sector has also made headway in tackling persistent market challenges, including poor-quality data and wholesaler performance. These improvements are crucial for accurate billing and smoother market operations, although hurdles remain.
From our perspective, the timing couldn’t be better for businesses to sharpen their focus on water efficiency and innovation.
Those looking to enhance data insights, optimise water use, and drive sustainability initiatives will find an increasing array of solutions at their fingertips. While progress may seem slow, the market is gradually opening up, and the rewards are there for those who are proactive.
The Ofwat report underscores that, while advances have been made, there’s still a long road ahead. For businesses aiming to take control of their water costs and consumption, Self-Supply remains an excellent choice, offering not only financial benefits but also a stronger relationship with wholesalers.
We think that now is the perfect time to act. In a series of blogs over the coming weeks, we will focus on the positive changes reshaping the sector and explore practical steps business customers can take to improve operational efficiency, gain greater clarity on costs and consumption, and find new ways to collaborate with water providers.