Why aren’t more businesses switching their water supplier?
23/07/2018
Open Water

When the non-domestic water market opened in April 2017, businesses gained the opportunity to choose their water supplier – but so far, it seems that few businesses have chosen to do so.

According to Ofwat, around 120,000 customers engaged with the market within the first year of it opening. Around 25,000 considered switching but chose to stay with their current provider, 10,000 have renegotiated with their existing supplier, 15,000 are actively considering switching and 35,000 plan to engage in the market in the near future. However, only 35,000 customers had actually made the switch at the 12-month mark.

As that accounts for just 4% of customers, this means that the vast majority of the market is yet to switch their supplier. Of course, any new market is likely to take some time to mature, and we have seen more activity in the first year of the English water market opening than we did when the Scottish water market opened – only 2% of Scottish businesses switched their supplier in the first four years of the open market.

Why aren’t businesses switching?

When we spoke to over 700 SMEs for our ‘The Missed Opportunity’ report, we asked those with an office in England why they hadn’t made the switch yet. The most common answer was that switching suppliers just isn’t a priority, with businesses in the South West most likely to see switching as a low priority. None of those we spoke to in the manufacturing industry had switched their supplier, and they were also the most likely to say that it wasn’t a priority for them.

Interestingly, a quarter of those we spoke to said that they haven’t switched suppliers because they are happy with their current supplier.  However, 9% told us that they’re too busy with work to switch, and 4% said that switching is too complicated. At SES Business Water we’re trying to make the switching process as quick and easy for businesses as possible – you just have to fill in a simple  online form to tell us you would like a quote , and we will send you a quote and if you want to accept all you need to do is reply yes and we will do the rest – so we were disappointed to hear that time and complexity are barriers for some businesses.

Is awareness still an issue?

Our research revealed that awareness is still low among small businesses – 59% of those we spoke to weren’t aware that businesses in England can now switch their supplier, and 15% stated that they haven’t switched because they don’t have enough information about switching. Ofwat also found that awareness is low among smaller businesses; less than half (48%) of microbusinesses are aware of the changes to the market, compared to 89% of large businesses.

While awareness clearly isn’t the only barrier to switching, we believe that it’s a really important factor in the low switching rates we’ve seen so far. Ultimately, if businesses aren’t fully informed about their options or the benefits of switching, they’re unlikely to do so – and we want to make sure that businesses of all sizes are getting the most out of the open market.

Talk to the experts

Got questions about what’s changed in the market, or how you can switch your supplier? Contact us online or give us a call today!
Infographic: A Missed Opportunity
06/06/2018
Open Water

In the year since the English water market opened, more than 120,000 supply points have switched their water retailer. We spoke to over 700 small businesses – here’s what we found.

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A Missed Opportunity
06/06/2018
Open Water

Research reveals that while small businesses view themselves as cost-savvy, most aren’t switching water suppliers, or other services.

Research carried out by SES Business Water in conjunction with YouGov has revealed that just six per cent of small businesses with an office in England have switched water suppliers since the non-domestic market opened a year ago, even though 92 per cent of small businesses describe themselves as cost-savvy when it comes to choosing suppliers. In addition, the research showed that only 39 per cent of small businesses are switching providers of other services*, including energy, stationery, IT, healthcare and pensions.

Since April 2017, businesses and organisations in England no longer have to buy their retail water services from their regional water company, and can choose one retailer for their water and another for wastewater services, or just one for both. Small businesses that switch can expect to see a reduction in their water bills, and may also see further cost reductions through the identification of abnormally high levels of consumption and leaks. In addition, having the freedom to switch gives small businesses the chance to choose a company with a better customer service record than their current supplier.

Despite these benefits, research carried out by SES Business Water and YouGov, in which 757 people were surveyed, revealed that just six per cent of small businesses with an office in England have taken the opportunity to switch water suppliers. Conversely however, 92 per cent of small businesses taking part in the research believe they are cost-savvy when it comes to choosing suppliers, and 98 per cent believe being cost-conscious is an important attribute for their type of organisation – indicating they will place importance on being careful with money, being mindful about their purchases, and always looking for the best deal on supplies, including utilities.

SES Business Water’s research also showed that, on average, only 39 per cent of small businesses are likely to switch providers of other services*, including stationery, IT, catering, cleaning, car leasing, energy, healthcare and pensions – so many more businesses could benefit from making comparisons and switching to save money.

The research also highlighted the reasons why only a small percentage of small businesses are switching water suppliers. While 59 per cent of small businesses were not aware that businesses in England could switch water suppliers, there was not an obvious correlation between awareness and action. The most common reason cited for not switching water suppliers was that it’s not a priority (31 per cent), even though only a quarter of respondents said they are happy with their current water supplier.

Energy was one of the top services that small businesses have switched, with over a third (38 per cent) switching their energy supplier in the previous 12 months. The same percentage of small businesses reported that they have switched stationery supplier to make savings. The services that small businesses are least likely to switch are catering (10 per cent) and healthcare (8 per cent) – but these percentages are still higher than for switching water suppliers.

Max Langford, SES Business Water’s commercial director, said: “Small businesses play a significant role in the country’s economy, but it can be challenging for them to grow and prosper. Therefore, they need to be shrewd when it comes to their spending behaviour, especially in today’s uncertain times.

“However, their inactivity in terms of switching suppliers of key products and services could mean they are missing out on a range of important benefits – for water, these include cost, efficiency and resource savings, and better customer support.

“While our research confirmed that an overwhelming majority of small businesses believe that it’s important to be cost-conscious, and view themselves as cost-savvy, it also highlighted there is potential for many businesses to refocus their efforts, shop around and save money.

“Small businesses are far more likely to switch energy or stationery supplier than their water supplier, even though switching water could reduce their costs. It’s clear that more must be done to raise awareness of the open water market among small businesses so they can actively engage in it.”

SES Business Water is committed to improving market engagement by communicating with small businesses across the UK to explain how switching can help them achieve cost savings and access better products and improved customer service.

To coincide with the one-year anniversary of the opening of the non-domestic water market in England, SES Business Water has published The Missed Opportunity report, which summarises the switching activities of small businesses.

Click here to download The Missed Opportunity report (PDF).
SES Business Water’s expert predictions for the water market
17/05/2017
Open Water

A few weeks have now passed since the water market opened in England, and we’ve been busy helping customers to benefit from switching. It’s a good time to consider how the market will change as more businesses switch suppliers, so what can we expect to see in the next 12 months?

We talked to our commercial director Max Langford to find out his predictions for the first year of the open market.

1. Do you think many businesses will switch suppliers in year one?

It’s early days but we have been delighted with the number of enquiries we have had across all sectors of the market, from SMEs to large corporates. Whilst it took a while for businesses to switch when the Scottish water market opened in 2008, we think that businesses in England will see the benefits that competition has brought to Scottish businesses and be motivated to switch.

There are also some different drivers for switching in England - for example, multi-site customers who no longer want to deal with multiple suppliers. So we’re hoping that first year switching levels will be much higher in England.

2. By switching, will businesses see their water costs fall immediately?

There will be benefits for most customers. Customers shouldn’t expect costs to fall dramatically – initial savings will probably average around 2-3% - but they should see some reduction in their bills straightaway. In addition to this, those with multi-site portfolios should also benefit from administrative savings associated with dealing with one supplier and consolidating their billing.

3. Do you think water efficiency will become more of a priority for businesses?

I do think that businesses will be more focused on becoming as water efficient as possible and we’re certainly supporting all of our customers in their efforts to save water.

Although cost savings are likely to be low at first, if suppliers also help their customers to reduce their consumption then businesses should see a real difference in their bottom line. Businesses that are looking to switch would be wise to start by reviewing their bills and consumption; they can then work with their supplier to become more efficient. There are so many simple ways for businesses to save water, from small changes to employee behaviour to installing smart meters so they can monitor their water consumption online, that every business should be able to save water and money.

4. What do you think businesses will be looking for when choosing a water supplier?

Aside from lower water bills, which is likely to be the first thing businesses look for when making the switch, I think most businesses will be seeking a high standard of customer service from their supplier.

What’s most important in a supplier will depend on the individual business, but there are some things that businesses should expect from any supplier. We believe that most customers will probably be looking for a simple way to manage their water account, so that they can get on with their day-to-day business activities. That’s why we’re making it as easy as possible to switch to SES Business Water and we offer services like our online customer portal.

We expect that multi-site businesses will be particularly keen to take advantage of the ability to switch all of their sites to one supplier. Our customers are able to completely streamline their bills, as we’ll send them one bill for their water and wastewater across all of their sites, so they only need to make a single monthly payment. It’s services like these that will be most valuable to customers looking to switch.

5. How do you think the new market will change the products on offer?

We think that the changes to the market will prompt suppliers to offer their customers more innovative solutions to better meet their needs. The increased competition in the market means that customers now have more influence than ever over suppliers, so we hope that there will be an influx of new products so every business can find a solution that suits them.

We’ve already got the ball rolling with our Wholesale Tracker Plus product, which enables businesses to access wholesale water rates without becoming a self-supplier. Businesses that choose this product pay the lowest cost allowed by the Water Act and one charge for the services they take from SES Business Water, giving them total transparency when it comes to their water bills. It’s this kind of innovation that could really transform the water market.

If you want to join the growing number of businesses that have chosen to switch supplier, talk to our experts to find out how SES Business Water’s services could benefit your business - give us a call today on 01737 785842.
Is switching worth it for every business?
27/04/2017
Open Water

England’s water market is now open, meaning that an extra 1.2 million businesses now have the option to switch their water supplier. However, like many businesses, you may be wondering what switching suppliers could do for your business and whether it is worth your time. 

We sat down with SES Business Commercial Director Max Langford to find out whether every business will find it worthwhile to switch.

There have been claims that suppliers are only focused on large businesses – will switching suppliers benefit small businesses too?

At SES Business Water, we’re helping businesses of all sizes to switch – we secured 24% of all pre-switch requests before the market opened, and around half of those that have already switched to us are SMEs.

Most small businesses should see savings on their water bills, how much will depend upon where in the country they are as potential savings do vary by region. Businesses of all sizes should also be able to benefit from improved customer services from their supplier. Many of our services are as valuable to small businesses as they are to large businesses - all of our customers are able to manage their account by logging onto our online customer portal, for example, and any customer that has water and wastewater accounts with SES Business Water can receive consolidated bills.

For businesses that have multiple sites in different areas of the country, will switching all of their sites be too much hassle?

No, not at all. Single or multi-site, the process is really straightforward.

Multi-site businesses follow the same simple switching process as single site businesses, so all a business needs to do is decide which sites they want to switch and we will take over the process for them – firstly, we’ll work with them to get a full list of their sites (comparing this to the market data to ensure a smooth transition) and then we’ll do all the hard work to notify previous suppliers on their behalf, whilst arranging for meter reading together with establishing a switch date. It takes roughly around 2-4 weeks for sites to transfer. At SES Business Water we monitor this process closely, ensuring that on go-live all sites in the portfolio are ready.

In fact, switching could make it much easier for multi-site businesses to manage their water supply.  We know that keeping track of bills and monitoring consumption can be incredibly time-consuming for multi-site businesses with numerous meters, which is why we created our One Bill solution. Multi-site customers can opt for One Bill to receive one electronic document with all of their consumption and charges across all of their sites, with a single invoiced sum so they only need to make a single monthly payment. 

Within as little as three weeks, multi-site businesses could be enjoying one bill and one online view of their consumption for all of their sites.

How will switching make a difference to the water market as a whole?

We believe it’s the responsibility of suppliers to make the open water market a success, and so we’re encouraging all businesses to engage with the open water market because we believe that the more businesses that switch, the more benefits they will see.

Now that businesses can choose their supplier, water retailers will need to commit to a high standard of customer service or risk losing customers. By exercising their right to switch, businesses will gain more influence over suppliers and we hope this will stimulate innovation in the market as retailers strive to provide customers with the best solutions for them. We’re ahead of the curve with our new Wholesale Tracker Plus product, which tracks the annual wholesale rate with a pre-agreed management fee for any services required, so customers have the transparency of knowing exactly what they are paying for. 

What should businesses consider before they switch?

It’s important for businesses to think about what they really need from a supplier before they switch. It might be a good idea for any business thinking of switching to first carry out a simple water audit, which should give them a good understanding of their consumption and make it easier to decide what their priorities should be when it comes to choosing a supplier.

There are some services that businesses should expect to receive from their supplier, such as transparency around charges and an accurate bill. Whether a business is looking for a simpler way to manage their account, or help to become more water efficient, SES Business Water can help – they just need to contact our team of experts.

Is it straightforward to switch to SES Business Water?

We have made it as easy as possible for businesses to switch to us – all businesses need to do is fill out an online form, and we’ll handle the rest. From quote to supply, the switching process can take as little as 3 weeks, so it doesn’t take long for customers start seeing the benefits of being with SES Business Water.

We value all of our customers, big and small, and we look forward to providing even more businesses with our high standard of customer service. If you would like to talk to us about the benefits of switching or start your switch to SES Business Water, call us today on 01737 785842.
SES Business Water wins over a fifth of all businesses in pre-switching window
30/03/2017
Open Water

Industry figures have been published by MOSL, the central water market operating service, confirming the number of businesses submitting switch requests ahead of the commercial water market opening up in England.

Ahead of the official launch date (Monday 3 April), rapidly expanding SES Business Water has secured around 24% of all pre-switch requests from businesses across the country, from large businesses looking to consolidate their portfolio under one national retailer to small local businesses wishing to avoid separate water and wastewater retailers.

SES Business Water has pioneered the development of wholesale tracking products, giving organisations access to wholesale market prices along with a single clear service fee. This provides transparency and peace of mind to organisations looking for confidence that they have secured the lowest prices in the market. The Wholesale Tracker PlusTM product can also offer businesses a viable alternative to self-supply, avoiding the admin-intensive processes and working capital required to acquire a licence.

SES Business Water managing director Giuseppe Di Vita said: “Organisations are actively seeking out different products and solutions and engaging with retailers to discuss what their options are in an open market.

“Businesses requesting to switch before the commercial water market opens is a good indication that many will seize the opportunities that it presents. The more we can engage businesses in the benefits of the open market, the more we can help them to manage their overheads by taking control of water costs.”
The water market is changing, but what will stay the same?
30/03/2017
Open Water

From April, the non-domestic water market in England will see some of the biggest changes in decades as businesses can choose their water supplier. But in this evolving environment, what will stay the same?

Your water wholesaler

If you choose to switch your water supply, you will be billed by the new water retailer you have chosen. However, your water will still be physically supplied by your closest geographical wholesale company, and your wastewater will still be treated at the same plants. So don’t worry – your water supply won’t be interrupted during the switching process.

Your retailer

Competition in the retail business water market is all about choice – you can choose whether or not to make the switch, but if you don’t, your retailer will also remain the same. The benefits of the open water market will be available from day one: at SES Business Water, we’re making it simple for businesses to manage their water, from simple account management and straight forward solutions for small businesses to access to the lowest prices on the market with our Wholesale Tracker Plus for medium and large organisations.

Your water charges                                                                                                                        

Don’t expect your water bills to reduce dramatically as soon as the market opens – it’s likely that savings will not be significant initially until the five-year price control frameworks are replaced – the current one lasting until 2020. However, some savings are available and the new water market should offer competitive tariffs and new types of products and solutions to help your organisation take control of its water costs, from reducing consumption to accessing lower prices. The open water market will bring a whole swathe of benefits – from product innovation to value added services such as smart meters.

Our high standard of customer service

Whether you’re an existing SES Business Water customer, or you’re joining us once the water market opens, you’ll receive the same high level of customer service. If you have any questions about how the water market will affect your business, we’re here for you – get in touch today.

 
What we’ve learned from Scotland’s competitive market
21/03/2017
Open Water

Deregulation will be the biggest shake-up in the water industry in decades - and at SES Business Water, we know what it’s like to work within a competitive market. That’s because we already operate in the Scottish market, which has been open for competition since 2008.

While there are differences between the Scottish and English water markets, we believe that our experience in actively operating within a competitive environment will be invaluable when the water market opens in England on April 1st. Here are some of our key learnings:

Businesses will save money

Businesses will undoubtedly be hoping to see a reduction in their water costs when the market opens in England. In Scotland, cost savings were modest at first, but it’s now estimated that Scottish businesses could save between 15% and 20% simply by switching their water provider.

Naturally, there has been a lot of discussion about the level of savings that businesses should expect when the English water market opens; while opinions vary, it’s likely that businesses will see initial savings of around 2-3% on average. Market margins are unlikely to change significantly in the next two to three years, so there will be a limit to the discounts that suppliers can offer.

Businesses should avoid tying themselves into a long contract (more than 2-3 years) to ensure that they can take advantage of opportunities that emerge as the market evolves.

Multi-site customers, or those supplied with water and waste water services by different suppliers, can immediately benefit from internal cost savings by consolidating their portfolio so that all sites are with one supplier, meaning they can benefit from centralised billing and account management.

Water efficiency will be central

Our experts believe that the potential for businesses to reduce consumption, rather than costs, is where the real opportunities lie. Since the Scottish market was deregulated, one of the ways in which suppliers have been trying to differentiate their services is by helping businesses to become more water efficient. This has contributed to a reduction in Scotland’s water consumption of an impressive 16 billion litres, saving £35 million.

At SES Business Water, we foresee that English businesses will gain the most value from the new market conditions when suppliers combine lower rates with useful support for businesses looking to reduce their consumption. We’re already working with our customers to help them become more water efficient – from introducing smart meters to providing E-billing – and we hope that our fellow suppliers will have a similar focus on driving water efficiency for businesses.

Suppliers need to engage businesses

The full potential of an open water market will only be realised if businesses engage with it. Only 5% of the market switched in the first five years after the Scottish water market was opened, with Business Stream retaining 95% market share during that time.

We’re hopeful that although it took some time for businesses to fully engage in Scotland, now that the benefits of competition have been proven there’s no reason why switching levels shouldn’t be far higher – and far quicker - in England. A recent Ofwat report revealed that around two thirds of businesses remain unaware that they will be able to change supplier from April 2017. That puts much greater emphasis on us as suppliers to ensure that businesses are fully informed of the changes taking place so that businesses can make an enlightened decision about their water supply.

Customer satisfaction will be paramount

The increased competition will give businesses more bargaining power, so water suppliers will have to work hard to ensure that their customers are satisfied. More than 45,000 Scottish customers renegotiated the terms of their supply to receive better services, better prices (or both) in the first two years alone.  

Our customers are at the heart of everything we do, so we’re looking forward to being able to provide even more businesses in England with our high standard of customer service. We’re also enthusiastic about offering our English business customers more innovative solutions to managing their water usage, such as our newly-launched Wholesale Tracker Plus product, which tracks the wholesale price and enables customers to create a service package that’s tailored to their business.

Our experience working in the open Scottish water market has given us vital insight that means we’re well-prepared to support our English customers through the impending market changes. If you’d like to talk to our experts about how the new market conditions might impact your business, get in touch today. 
The benefits of an open water market on product innovation
20/03/2017
Open Water

An open water market will provide more transparency for business customers and will bring new product innovation including market trackers.

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What to expect from your water supplier
13/03/2017
Open Water

In a few weeks, you’ll have the freedom to choose the right water supplier for your business, giving you the chance to benefit from better customer service, competitive pricing, and consider new products and services to meet your needs. Here are five key expectations you should have when choosing a new water retailer for your business.

1. An accurate contract with your agreed terms

This may seem like a given, but many businesses have been paying the wrong charges or have been on the wrong tariffs for years without knowing it. Switching supplier could provide the opportunity to rectify this – your supplier should make sure that any new contract is set up to make sure you only pay exactly what you need to.

The good news is that if there are any inaccuracies in charges, you have the right to reclaim a refund! If you switch to a new supplier, make sure you check your contract is exactly what you signed up for to avoid being charged incorrectly in the future, and be sure to check whether a health check is worth conducting to look out for historical errors that could be resolved and refunded.

How can SES help? Where we think savings could be identified, we offer a charges health check service, reviewing your bills from past and current suppliers to ensure that you haven’t been overcharged and identifying any refunds due.

2. More transparency

With increased competition in the market, suppliers will need to demonstrate greater transparency and prove that they offer true value for money in order to earn businesses’ trust. You should have total peace of mind that your water supplier is providing you with the best solution for your business, which also means understanding exactly what you’re paying for.

How can SES help? We understand that businesses need transparency, which is why we’ve launched our new Wholesale Tracker Plus product. Wholesale Tracker Plus tracks the annual wholesale rate (the lowest cost allowed by the Water Act) so you have access to the most competitive prices on the market, with a clear water management fee based on the services you’d like from us. 

3. A simple way to manage your account

Managing your business water should be straightforward, so you can concentrate on your day-to-day operational tasks. It’s your supplier’s job to make it as easy as possible for you to handle your water supply and give you the information you need to make informed decisions about your consumption and charges.

How can SES help? Our online portal means that you can view your billing history at a glance 24/7, wherever you are. Large businesses will even be given their own Key Account Manager, taking the stress out of managing high consumption.

4. Consolidated billing

Water suppliers should also make it simple for businesses to pay their water and wastewater bills, but businesses with sites across different regions of the country will understand that handling multiple bills from multiple suppliers creates headaches for accounts teams and makes it difficult to take control of utility costs. One of the biggest benefits of the open water market is the ability to select one supplier for all of your business sites. Consolidating your bills – for water and wastewater, or across sites for multi-site businesses – means that you only have one bill and one set of payment terms to manage.

How can SES help? From April 1st, we’ll be able to provide you with one bill for all of your meters. So you can see a single invoiced sum for all of you water, wastewater and trade effluent charges in one document and pay one single monthly payment.

5. Support with water efficiency

The open market puts water on the business agenda and will put a renewed focus on businesses reviewing their water consumption, creating a new drive for water efficiency. If suppliers give businesses tools like our online portal, businesses will have better access to their water data and be able to understand and reduce their consumption and costs. Water is a valuable resource, and working with businesses to reduce their consumption will not only benefit businesses’ bottom lines, but also the environment. 

How can SES help? We’re making it easier than ever for businesses to become more water efficient – we recommend installing smart meters so you can see how much you’re using in real time and work to bring your consumption down. Visit our hub for more of our expert tips on saving water at work.

Are you thinking about switching suppliers? Talk to us about your needs today and we’ll let you know how we can help.