Small businesses can stay in the market, CCW says
- Oct 5
- 2 min read
The Consumer Council for Water (CCW) will not now recommend small businesses are removed from the retail market.
The confirmation came as the watchdog published its two-years-on progress report from its 2023 Five Year Review of business customer experience in the market. At that time, CCW said the market was failing to deliver for the vast majority of customers, and that sub 0.5 megalitre a year users should cease to be eligible (unless they had contracted with a retailer already) unless tangible benefits were realised by 2025. It set the metric of a 10% increase in switching numbers by this customer group, and a 5% increase in contract renegotiation.
While contracting levels have fallen short of its targets, CCW said an independent report by CEPA had found customers were not suffering harm from being in the market, and that the experience of low volume consumers was set to improve from the smart meter rollout and Market Performance Framework (MPF) reform. Therefore, while it will keep the position under review, “we will not be recommending a change in legislation to remove low consumption customers from the market, at this current time”.
More widely, CCW said “significant progress” had been made over the past two years. Of the 22 recommendations from 2023, the watchdog said eight have been delivered, and progress is being made against ten more. Some highlights included:
Enhanced transparency and consistency in leak allowances.
Major steps forward in smart metering, with water companies’ commitment to install 800,000 smart meters for businesses by 2030, helping to improve billing accuracy and supporting water conservation.
Launch of the Business Customer Measure of Satisfaction (BR-MEX), which provides financial incentives for wholesalers to deliver improved service and resolve issues promptly.
Stronger incentives under the MPF for retailers to drive accurate meter readings and address billing issues, directly tackling a key driver of customer complaints.
Creation of a clear and comprehensive flow chart to support consistent and transparent market eligibility decisions.
For the remaining recommendations, CCW said it had taken all the actions in its gift, and is “waiting for others in the industry to do their part”.
It explained: "Customers not having ready access to their credit, confusion about whether some customer premises should be in or out of the market, and a lack of wholesaler accountability for business customer complaints, are still some of the areas where we continue campaigning for change.
“In other areas, legislative changes are still needed to deliver our recommendations – such as ensuring customers have a guaranteed alternative retailer to transfer to in the event their current one exits the market, and removing temporary building supplies from the market when they’re intended to become household premises. We continue to work with government, alongside others in the industry, to make sure these are delivered.”
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