Switching awareness edges up but activity remains flat

(by Karma Loveday)

Just over half (52%) of business customers are now aware they can choose their water retailer, up from just under half (48%) last year. But contracting levels remained broadly stable on 2023-24, with around 3% switching in the last 12 months and 4% renegotiating.

That’s according to Ofwat’s 2024-25 State of the Market report and Business Customer Insight Survey, which was conducted in partnership with the Consumer Council for Water.

Both awareness levels and activity increased with customer size. 12% of large businesses (250+ employees) switched and 20% renegotiated in the year, compared with 3% and 4% respectively for micro businesses. 78% of large users were aware of the market, compared with 53% of micro businesses.

Among switchers:

• 63% found the switching process easy but 16% found it difficult.

• 56% were satisfied with the time it took to switch, but 17% were dissatisfied with the time taken.

Of those aware of the market but inactive:

• 56% reported difficulty accessing the information needed to make an informed choice while 15% found accessing information easy. 

• 45% found it difficult to compare retailers. 

• 59% identified unclear or hard-to-compare pricing as the main barrier to engagement. 

Ofwat issued a consultation inviting further views on its July 2025 Retail Exit Code (REC) Review initial thoughts, in light of the new information shared. This runs until 8 December. Ofwat will publish more specific REC proposals in the spring/summer of 2026, with the new Code protections to take effect in April 2027.