In April 2017, water retail competition will start in England, joining Scotland, which has been successfully open to competition since 2008. As a result, the English water market will become the largest deregulated retail water market in the world to date.
The open market will allow 1.2 million businesses, including charities and the public sector, to choose who provides their water and sewerage services, similarly to how they can choose their electricity and gas suppliers.
Undoubtedly, competition is a key mechanism to encourage innovation. With it, companies are under pressure to distinguish themselves from the competitors, mainly through the introduction of value-added services and aiming for greater water efficiency to differentiate through better prices. The deregulation will pave the way for further significant changes in other areas of the water and wastewater industry. (more…)