Utility Week

24 | 26TH JANUARY - 1ST FEBRUARY 2018 | UTILITY WEEK Customers Analysis I n a nascent market like non-household water retail, the incumbent is king. Without the advantage of a ready-made customer base, new entrants have little choice but to fight for market share – be that through acquisition, in the case of Cas- tle Water and Business Stream, mergers, or organic growth via a tempting customer offer. However, so far, the market has seen little differentiation between offerings. Ofwat was expecting 30-40 applications for water supply and sewerage licences ahead of market opening. As it happened, there weren't that many, and although Mar- ket Operator Services Limited (MOSL) and the regulator claim there are 25 retailers in the market, the actual number of active companies is closer to 14 or 15. Meanwhile, MOSL's figures show 91,960 switch requests have been made since the market opened. This may sound like a lot, but it is impor- tant that we contextualise this number and remember that it is out of a possible 2.6 mil- lion SPIDs (supply points). Despite a lower than anticipated influx of new entrants and modest switching rates, aspirant new players are making an active effort to chip away at the market share of incumbent business retail arms. All of the retailers in the market inevitably claim they will offer high levels of customer service, and respond quickly to customer contacts. They also say their businesses will bring something new to the market. How- ever, it isn't clear yet what that is. The closest any company has come to a unique offering is The Water Retail Company – whose offer- ing is based entirely on lowering the bills of large water users through water efficiency measures. However, the company is as yet unable to extend its offering to smaller busi- nesses, which chief executive Rupert Redes- dale worries will be neglected in the market. Will the latest additions to the mar- ket bring with them a genuine unique selling proposition? Here are six of the new entrants hoping to take the market by storm, together with their claims about what differentiates them from the sector's incumbent players. Everflow • Founded: 2015 • Chief executive: Josh Gill • Headquarters: Billingham, England • Supply points gained: 13,357 Everflow was granted its licence for the Scottish mar- ket in October 2015. It has since sold water and waste- water services to businesses in Scotland, and was granted its licence for the English market just before it opened. The retailer is arguably the most success- ful new entrant to the English market, hav- ing gained the highest net number of supply points since the market opened: 13,357. Some notable contract wins for Everflow are the Hurlingham Club in London, car rental company Europcar, and Newcastle United Football Club. Clear Business Water • Founded: 2013 • Parent company: Verastar • Chief executive: Chris Earle • Headquarters: Lanarkshire, Scotland • Supply points gained: 2,816 Clear Business Water has been active in the Scottish market for a number of years and, as such, it has a relatively well-formed customer prop- osition. The retailer is part of Verastar – a little-known company trading Water retail: six new faces Utility Week sister publication Water.Retail looks at the six hottest new entrants to the English non-household water retail market, and hears how they plan to differentiate themselves. Water Plus Castle Water Anglian Water Business NWG Business Business Stream Water2business Pennon Water Services Affinity for Business SSWB SES Business Water Everflow Clear Business Water The Water Retail Company Pod53 Regent Water Water Choice South East ADSM Three Sixty Water First Business Water Waterscan Veolia Water Retail Thames Water Commercial Services Cambrian GAINS AND LOSSES IN THE OPEN WATER MARKET, AS AT 2 JANUARY 2018 -30,000 -25,000 -20,000 -15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 Number of supply points Source: MOSL Water loss Sewerage loss Water gain Sewerage gain

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