Farm businesses in England have been told to prepare for a shake-up of the water market.
From 1 April 2017, farm businesses will be able to choose their own water and wastewater services supplier, rather than being restricted to a regional supplier.
Currently, only customers using in excess of 50 million litres of water per year are entitled to choose their water provider.
However, the government has decided that from 1 April 2017 other business customers will also be able to pick who they buy their water from, much like they can with telecoms, electricity and gas.
The government has estimated that opening the market could deliver more than £200 million in overall financial benefit to the UK economy, through better water-efficiency, lower bills, and more tailored services.
Reducing water costs for farmers
Robert Gazely, farming consultant at rural organisation Strutt & Parker, says the introduction of a competitive water market may offer farmers an opportunity to reduce their water costs and benefit from improved levels of service.
He says major water suppliers such as Anglian Water, Thames Water, Severn Trent and United Utilities have developed separate business divisions in order to compete in the new open water market.
He said: “Farmers will be free to choose their retailer by looking at who has the best deal for them. While it is not possible to make the switch until April, businesses can start to look at the options now,” he says.
Mr Gazely says the opening up of the water market will particularly benefit businesses with multiple sites – as they will be able to choose one supplier for all sites and receive a single bill.
In Scotland, all businesses have been able to switch their water and wastewater retailer since 2008.
