Utility Week

6 | 4th - 10th November 2016 | UtILItY WeeK People & Opinion We need debate, not denials The energy industry does itself no favours by going on the defensive over retail prices. View from the top Giuseppe Di Vita, managing director, SES Business Water W ith under six months to go until the non- domestic water market is opened up to competition, the industry appears well on track to hit the deadline. The shadow market opened on schedule, and suppliers are lining up to com- pete for the 1.2 million businesses that will be eligible to switch sup- plier in the open market. The biggest challenge will be to convince businesses of the benefits of the open market and to encourage them to act. Engagement and innovation will be key to success here. Undoubtedly there will be some reservations. Water o•en has less of an impact on the bot- tom line than energy. For under- resourced utility managers, there will be a temptation to stick with the status quo. Small businesses too may need convincing of the benefits of switching. Larger businesses may also be reticent to enter the competi- tive market immediately, remem- bering the fall in market price that happened some months a•er energy deregulation. Yet the two markets behave entirely differently, with wholesale water prices set periodically rather than through an openly traded commodity market, so price sav- ings are available from day one. The challenge for suppliers is to highlight to businesses the benefits of an open, competitive market and counter any concerns by offering genuine reasons to act. Thankfully, there are plenty. Price will be important. In Scotland, businesses are already making big savings on their water bills. But the benefits of deregulation go further than that. Businesses should be expect- ing improved service levels from suppliers focused on customer needs, with products that offer a compelling reason to switch. For example, multi-site companies will benefit from a consolidated bill, no longer having to process large quantities of individual invoices and manage and pay multiple suppliers. The open market also brings an opportunity to prioritise water management and help businesses place as much focus on water efficiency as on energy. Aggregated data delivers an improved view of water usage across an organisation, allowing it to monitor, measure and mini- mise consumption. Articulating these benefits and helping busi- nesses to refine their water man- agement strategies will be a vital task in the months ahead. Price is important, but so is knowing that what you are pay- ing is fair. Deregulation increases transparency in utilities, giving customers extra confidence that their price reflects the market, and the reassurance that they have flexibility. For example, SES Business Water has launched Wholesale Tracker Plus, a product that tracks the annually set wholesale rate, with a specified manage- ment fee to reflect the services required; there is a 28-day notice period exit penalty, so customers need not fear they will be locked into a contract. Opening up the market pro- vides a chance for customers to save, but re-evaluating what good service means to business customers and taking a fresh approach to products to drive transparency and innovation are both just as important as the discounts we are bound to see pitched around the market. If businesses are to engage properly in the market and gain real benefit from competition, we will all have to strive to com- mit to – and meet – new stand- ards. The opportunity is there for the taking. Not just for the 1.2 million businesses that stand to benefit from the open market, but for water retailers too. "SSE has led the charge in demonstrating its transparency on tax, and this year increased it further." Fair Tax Mark director Emily Kenway on SSE being awarded the mark for the third consecutive year. SSE remains the only FTSE 100 company to receive the award "It's important that people are fully protected in the unlikely event a supplier goes out of business." Rachel Fletcher, senior partner for consumers and competition at Ofgem. The regulator has introduced a consumer credit safety net to protect customers in the event of supplier insolvency

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