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Written question asked by Lord Dholakia (Liberal Democrat) on Wednesday, 9 December 2020, in the House of Lords. It was due for an answer on Wednesday, 23 December 2020. It was answered by Lord Goldsmith of Richmond Park (Conservative) on Wednesday, 23 December 2020 on behalf of the Department for Environment, Food and Rural Affairs.

Water Companies: Competition

Question

To ask Her Majesty's Government what assessment they have made of the benefits the English water retail market has delivered for SMEs; and how many SMEs switched retailers in (1) 2018, and (2) 2019.

Answer

Since market opening, Ofwat has published annual reports on the business retail market, including with a focus on customer outcomes and benefits delivered to customers, including SME customers – see:

Its most recent report, on the third year of the market (2019-20) noted that just over half (54%) of small/medium SMEs (10-249 employees), and 58% of micro-businesses (0-9 employees) are aware they can choose their retailer. The majority (91%) of all business customers who had switched retailer or renegotiated a new deal with their existing retailer in the 12 months to spring 2020 reported that they had received some form of benefit as a result of switching or re‑negotiating.

Concerning switching rates, around 3.1% of small/medium SMEs (10-249 employees) and 4% of micro-businesses (0-9 employees) switched retailer or renegotiated a new deal with their existing retailer in the 12 months to spring 2020, compared to 6.2% (small/medium SMEs) and 3.6% (micro-businesses) in the 12 months to spring 2019.

Secondary information

Type
Written question
Reference
HL11288
Session
2019-21
Subjects
Competition Small businesses Water companies
Contains statistics
Yes
Link
View this Written question on www.parliament.uk