Close retail market to small customers if they remain disengaged, watchdog recommends

CCW has recommended the smallest customers be taken out of the non-household water retail market if their engagement rates do not improve within two years.

The watchdog said the market should be closed through a change in legislation to 0.5Ml/year customers (approximately equivalent to domestic consumption) who haven’t contracted with a retailer if there is not a 10% switch and 5% renegotiation increase by April 2025.

The recommendation came as one of a suite resulting from the CCW’s five-year review of the market from a customer experience perspective.

CCW reached the conclusion that the market was “failing to deliver for the vast majority of customers” and made recommendations across a wide range of areas including:

• improving the complaints process.

• delivering bills based on accurate and frequently read meters.

• greater ambition and focus on water efficiency by water companies and retailers.

• increasing smart metering for business customers; and

• improvements in the market code change process.

All of the recommendations fall within a maximum two year timeframe, with many expected to be delivered by April 2024.