A PYMNTS Company

UK: Ofwat says UK needs to open competition in water industry

By  |  September 19, 2016

Regulator Ofwat said that throwing open the water market to competition could be worth £2.9bn and save customers £8 per year. Households currently have no choice in which water company supplies them.

Ofwat said in a government-commissioned report that greater competition could mean innovation and lower prices.

The watchdog said new competition could lead to improved customer service, the freedom to choose supplier and the bundling of products such as energy and telecoms with water.

However, Ofwat said there was “uncertainty in predicting the outcome of opening the market”, adding that investment in new services would mean “reductions in customer bills are possible but likely to be small, especially in the short term”.

It added that its estimate of a market worth £2.9bn would come over 30 years.

The regulator said during the course of its review it spoke to a number of firms who said they saw the opportunity to provide new retail services more efficiently.

Full Content: International Business Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.