Question to the Department for Environment, Food and Rural Affairs:

To ask Her Majesty's Government what assessment OFWAT has made of whether the water market is working effectively for new entrants and small business customers.

Ofwat published their first annual report on the market, Open for Business, in July 2018 and are currently undertaking a further assessment of the market with a view to publishing their second annual report, likely in July.

The first report highlighted that, overall, market opening has benefited both customers who have switched and those who have not. Ofwat estimate that in the first year customers who switched or did not, but renegotiated services, saved:

• around £8 million through lower bills;

• approximately 270 to 540 million litres of water, equivalent to 100 to 200 Olympic sized swimming pools, due to water efficiency measures from switching; and

• time from more convenient billing or better customer services

The report identified that small and medium sized business customers are not yet experiencing the same benefits that larger customers receive from the retail market, and identified some issues preventing the market reaching its full potential for them and entrants to it. These include:

• the availability and accuracy of market data; and
• interaction between wholesalers and retailers.

Ofwat are working with market participants, including the Market Operator (Services Ltd, MOSL), to address these issues.