Strengthening the business water market through targeted reform

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I recently submitted our evidence to the Independent Water Commission, led by Sir Jon Cunliffe, and I’d like to share some of our key reflections and recommendations.

There is much to be positive about. The Business Retail Market is working. Self-Supply customers are proof of that: empowered to manage their own water, they are delivering tangible benefits in efficiency, cost control, and environmental performance. The model continues to grow, with Futamura and Intergen joining the community under new licences, and more businesses exploring the opportunity.

However, this momentum must be supported by reform.

Our submission to the Commission outlines several areas where improvements are needed.

1. An independent, effective complaints process


At present, the process for resolving disputes is not working. Customers lack confidence in a system that is neither transparent nor sufficiently independent. A new regime is needed, and one that can respond swiftly and fairly, and that holds all market participants to account.

2. A smarter approach to Smart Metering


Smart meters offer a critical opportunity to transform how businesses understand and manage their water use. But to fulfil this potential, we must learn from the energy sector. Metering responsibilities could be separated from Wholesalers and supplemented by accredited third party providers. In addition, digital consumption data must be standardised and made freely accessible to customers, with half-hourly data the norm for high users.

3. Inclusive, competitive innovation funding


We must broaden access to Ofwat Funds so that all customers, including Self-Supply licensees, can contribute to and benefit from innovation. The current approach is too narrow and dominated by incumbents. True transformation will only come through open, collaborative effort.

Beyond these priorities, we are also recommending a series of supporting reforms to simplify credit and payment arrangements, align tariff structures across Wholesalers, and strengthen water efficiency incentives, such as reintroducing tax relief through a revised Water Technology List.

At Waterscan, we firmly believe the Business Retail Market has laid a strong foundation. But it is only through targeted reform that we can create a market that is fair, future-ready, and fit to support the UK’s wider environmental ambitions. We are committed to working constructively with the Commission, with regulators, and with our peers across the industry to help deliver that change.

Waterscan