Water industry policy
Waterscan has been heavily involved in the development within the water industry over the last 15 years, and consequently has its own views of the impact that water supply competition will have upon the customer. We can all recall the deregulation of the gas and electricity markets and hope that the water industry has learnt from the events that occurred, taken stock and evaluated the best approach.
Three milestone reports have been produced (the Cave Review, the Walker Review and PR09) suggesting that thorough research and preparation is being undertaken. Whilst this provides insight into the future of the water market, it is still unclear exactly how the water users' and water companies' demands will be met. Timescales have not yet been proposed nor expectations of delivery agreed.
Waterscan has been active in water privatisation since its inception and is keen to see: an improvement in efficiency; competitive market prices for water users; new investment in infrastructure; and enhanced service delivery. Waterscan's business model is based upon customer focus and satisfaction and the introduction of competitive water pricing can only further enhance that.
In the current climate, more attention is being paid to the bottom line; with customers addressing costs in all areas from utilities to all purchasing lines. It is mperative therefore that customers are able to understand where the real opportunities lie in reducing water costs: one cannot simply await the opening of the markets and hope that will offer the required solution. There is currently the prospect of some significant proposals for increases in water bills by 2015, with some customers expected to pay over 20% in excess of the rate of inflation.
Waterscan addresses the diversity of the supplier areas and helps to negate the concerns derived from geographical location. It seems unfair to ask water users in the South West, who account for barely 3% of the UK's population, to maintain 14% of our national coastline and continue to pay significantly higher commercial water rates as a results. We need to resist any new water regime that gives new life to unjustifiable cross-subsidies between UK regions and support the introduction of simple legislation which welcomes new investors and offers a real opportunity to both the investor and customer.
Waterscan has witnessed first-hand, through negotiation, the benefits of the opening of the Scottish market, albeit limited at present, but an area of continual development. It is only fair that such opportunities are offered to all water customers in England and Wales.
With the Carbon Reduction Commitment at the forefront of the minds of all commercial enterprises water will undoubtedly be the next hot topic. Waterscan offers Water Footprint Reports to all of its customers to alleviate concerns and prepare for this opportunity when it arises. We will keep you abreast of all developments within the market and when opportunity arises Waterscan will work with you to maximise the benefit. Watch this space .......
To read the full Cave report: http://www.defra.gov.uk/environment/water/industry/cavereview/pdf/cavereview-finalreport.pdf
Cave review - press release: http://www.defra.gov.uk/environment/water/industry/cavereview/pdf/cavereview-pressnotice.pdf
