Business Consumers

Background

We represent both domestic and business consumers.  Business consumers range from individual shops, to councils, schools and very large industrial sites.

The majority of business customers are already metered.  For those that are not, some water companies will install meters free of charge, whereas others will charge for this service.

Competition for business customers

Since 1 December 2005, competition has been open to large business customers who use at least 50 megalitres (50,000 cubic metres) of water a year,  There are only around 2,200 customers who use this much water, but so far only one of them has switched supplier.  This is because they are unlikely to save money by switching supplier.  Business customers are frustrated at the lack of progress with competition.

We surveyed business customers in 2007, with Ofwat, to find out businesses’ views of competition.  We found that lower bills are the key driver for customers wanting to switch, followed by better service. These reports can be found in the research area of our website. Key highlights are listed below.

Listening to business customers’ views

We meet business customers three times a year in order to listen to their concerns about the water industry, share best practice and to take forward issues on their behalf.  Issues we discuss include competition, surface water drainage, metering, storm water re-use, self-lay.

Any business customer is welcome to attend the meetings. 

Meeting dates for 2010

Thursday 25 February

Thursday 1 July

Thursday 4 November

All meetings take place from 11am to 1.30pm at our office in Victoria Square, Birmingham.

Contact Christina Blackwell on 0121 345 1042

Facts and figures

Ofwat estimates that there are around 1.2m business customers.

There are different classes of business customer:
Small businesses (~ 1Ml/yr) = libraries, museums, sports venues
Medium businesses (~ 5Ml/yr) = small restaurants, hairdressers
Large businesses (~ 20Ml/yr) = hotels, manufacturing, universities
NB - Average consumption of water (1Ml = 1,000,000litres or 1,000cubic metres)

Evidence Base

Consumer Council for Water & Ofwat research - Setting Strategic Direction, Competition research with business customers – June 2007
     
This was quantitative research carried out across England and Wales.  Sample size – 684.  eligible and ineligible customers.  Various business types (eg manufacturing, transport, local government, education).  Included customers who use a minimum of 5Ml/year.

Key findings:

- 93% of business customers would switch if offered lower bills
- 49% of business customers would switch for a better service (eg water efficiency audits or leakage detection)
- 60% of business customers think the water industry compares unfavourably with other utilities
- 64% of business customers want to see a restructuring of the industry to facilitate more competitive pricing

Christina Blackwell has responsibility for this area – 0121 345 1042

Last updated: 21/10/09