New Policy To Overhaul Competition In UK Water Industry

The water industry in England and Wales is about to undergo a major shift.

“From April 2017, 1.2 million eligible business customers (businesses, charities or public sector) mainly in England will be able to choose who supplies their water and wastewater retail services. Retail services include things like water meter reading and customer services,” according to the Open Water Program, which was set up by the UK government.

“That competition may be extended to consumers from as early as 2020,” Computing, a British magazine, reported.

Other authorities in Europe have also worked to introduce competition in the non-household water market.

“A similar system has been up-and-running in Scotland since 2008. However, the Scottish system is much less complicated in that there is only one water company to deal with and, hence, fewer economies of scale that can be generated,” Computing previously reported.

In the UK the Open Water Program means big shifts are coming for water providers.

“Water companies like Northumbrian Water Group, therefore, are in a race against time to prepare themselves and their systems,” Computing reported.

What are the benefits?

Program backers say “the introduction of competition aims to drive down prices and improve customer service, whether you’re the smallest charity or the largest corporation. Having one water retailer also means companies can opt to have just one water bill if they wish — instead of dozens or even hundreds of individual bills they receive currently,” according to Market Operator Services Limited (MOSL), a private company owned and operated by water companies that is playing a lead role in making the new market possible.

As the region makes this shift, some of the biggest challenges come in the form of information technology. The IT service firm CGI will be contracting with MOSL “to build and support the central market operating system which will enable trading parties to take part when the market opens in April 2017 and allow customers to move freely between retailers,” according to a release from MOSL.

U.S. water utilities are also in the midst of heated conversation around competition. Some observers argue there is a “secret war” being waged over U.S. drinking water.

“A battle is underway between private companies attempting to step in to take over ownership or management of public water systems in the U.S. and advocates who are blocking their efforts to do so,” The Huffington Post argued in an analysis piece.

Michael Deane, executive director, National Association of Water Companies, offered a different view.

“Across the board, public and private utilities and municipal partners are realizing they have to work much closer together. It’s not public vs. private. Every community has something they need to address and in some cases they can do it on their own and in some cases they’ll sell to a private company and in other situations a private company can do just part of it,” he said.

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