New entrants winning business and state of the market improving, Ofwat finds
For the first time since the business water retail market opened in 2017, new entrant retailers have acquired the majority of switchers.
That was among the findings of Ofwat’s 2023/24 state of the market annual report. 54% of switchers moved to a new entrant – the first time non-incumbents have taken the majority of business. New entrants now supply 8.5% of all supply points, and grew their market share by 1.6% in 2023/24.
That said, the switch rate remained consistent (and low) at 3.4% of all SPIDs. As usual, major users (annual consumption over 50Ml) were the most active with a 14.8% switch rate compared to 2.9% of the smallest users (annual consumption less than 0.5Ml). However, Ofwat found the prices savings available to small customers had increased (see table).
Elsewhere in the report, there was positive news on the market frictions of poor quality market data and wholesaler performance, and complaints to retailers fell 6%, taking them below the level observed before market opening for the first time. There was also data on consumption by customer size.
Ofwat said it would continue to monitor the market, including to inform its next Retail Exit Code review which it anticipated starting in 2025 for implementation in April 2027.
New entrant retailer Everflow called the report a “milestone,” and said that it was “pleased to see the report recognise the progress and evolution that’s happening within the market, with new entrants driving innovation and growth, market frictions reducing, price savings increasing and customer satisfaction growing across the board”.
The findings from Ofwat highlight that new entrants are winning business and the market is improving, which is encouraging for the water industry. This shift suggests increased competition and innovation, which can lead to better services for consumers. As new companies emerge, it’s vital to monitor how they impact pricing and efficiency, ultimately benefiting customers and the sector as a whole.
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other useful Resources,
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https://bookmarkingsiteslist.com/page/education/how-to-use-the-griffith-referencing-tool-effectively
https://www.italydivide.it/single-post/2018/02/23/facciedadivide-dotwachers-news?commentId=711a38a6-148d-4adc-aa96-af269a3602ec
https://www.localhand.co.uk/viewListing.go?lid=2845
The latest Ofwat 2023/24 state of the market report shows a positive shift in the business water retail sector, with new entrant retailers acquiring 54% of switchers for the first time since the market opened in 2017. This growth reflects increased innovation and competitiveness, with new entrants like Everflow driving progress. Despite the switch rate remaining low, smaller users are seeing better price savings. Much like finding the best service when you pay someone to write my assignment, switching water providers can bring valuable benefits!
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