The Strategic Panel, the most senior governance group in the Business Retail Market (BRM), has published its response to the Independent Commission’s call for evidence as part of its review of the water sector. The Panel has focused on solutions for water efficiency and on the scope of the market, given the Commission’s question on whether all but the very largest business customers should be removed from the market.
The Panel makes the case that the review provides a critical opportunity to improve outcomes for business customers, enabling the BRM to realise its full potential and contribute to delivering sustainable growth and social value.
The Panel strongly believes that keeping business customers of all sizes in the BRM in England is important to deliver improved outcomes for existing and future customers, the market, the environment and to enable the government’s growth agenda. The Panel’s response sets out evidence that the market is delivering customer benefit and highlights what more needs to be done, reflecting its Roadmap to a Flourishing Market, and the opportunity to follow the evolution of the business water market in Scotland.
The Panel also highlights it has seen neither evidence nor the benefits case to return all but the very largest business customers (using >50Ml/year) to incumbent monopoly providers.
Turning to the options to support greater water efficiency in the BRM, the Panel sets out the need for, and makes recommendations on, increased coordination, financial incentives, a more urgent review of wholesaler tariffs and policy leadership from goverment to build on the natural incentives for businesses to reduce usage.
The Panel highlights that these changes are needed to create the conditions for retailers (and third parties) to unlock the water saving potential of their customers, deliver the government’s 9% reduction target for businesses by 2038 and help unlock the government’s desired economic growth.
The Panel goes on to say it believes that government needs to provide more central, tangible leadership to deliver the 9% reduction target and unlock the growth potential in the sector in order to promote water efficiency.
While the Panel developed its own independent response, it held an industry workshop on 17 March to ensure the range of views from across the market were heard on relevant topics.
The Panel looks forward to working closely with the Commission as it develops its recommendations to the UK (and Welsh) Government’s which are expected in early summer.
Read the full response here. If you have any questions, please email
