You can read the full survey results here.
From 1 April 2017, all businesses in England (but not Wales) will be able to shop around for their water and sewerage suppliers; an option only currently available to the largest users.
Even business customers who decide not to make a switch will be affected. This is because most of the public water companies are dividing their business structures between wholesale (the pipes and infrastructure) and retail (the billing).
The NFU member survey found that:
- 80% of farmers use mains water for both non-household and household (business and domestic) purposes, and a further 11% use mains water for non-household purposes only
- Less than half (46%) of farmers are aware of the forthcoming changes in the ‘Open water’ market for non-household premises
- Over half (57%) of farmers describe the current level of service provided by their existing water company supplier as ‘good’ or ‘very good’
- Over one-third (37%) of farmers consider that reducing the cost of mains water is a high priority for their business
- Just under three-quarters (72%) of farmers are either ‘very’ or ‘fairly’ supportive of retail competition for mains water services
- Only 6% of farmers said they would be prepared to switch retailer for a saving of 1-2% in charges, with over one-third (40%) of farmers indicating that they would expect a cost saving of at least 11% to encourage them to change their water services retailer.
Value added services?
Farmers responded enthusiastically to a range of potential ‘value added’ services that water and waste water service retailers could potentially offer them as ‘non-household’ customers.
Four out of five farmers (79%) expressed an interest in leak detection services. Given the nature of farms (large ground area, rurally isolated, relatively long lengths of pipework on the customer’s side of the meter) this is not surprising.
Approximately half of farmers are interested in:
- Installation of equipment such as smart meters to help them monitor their water consumption (52%)
- Installation of equipment to recycle water and to use non-potable (‘grey’) water (47%)
- Improved billing services in a standardised, electronic format (44%)
Around one-third of farmers are interested in:
- Audits to help them comply with water fittings regulations (38%). Livestock farmers in particular find the compliance requirements difficult to understand and implement in respect of, for example, livestock watering troughs
- Water efficiency audits and services (38%)
- Insurance for the maintenance and repair of pipes and drains (34%)
- Equipment to deal with on-site water treatment (30%)
As part of the NFU survey, farmers who expressed an interest in each ‘value added’ service were asked a supplementary question about their willingness to pay for it.
A high proportion of farmers (79% of those interested in the service) would be prepared to pay for insurance for pipe repairs.
Two-thirds of farmers who expressed an interest in the services were also prepared to pay for on-site technology for water treatment (65%) and irrigation consultancy (64%).
Half of farmers would be prepared to pay for leak detection services (56%) and support in using grey water and recycling technology (49%).
Farmers were more reluctant to pay for a range of services that included the installation of smart meters, water auditing, water efficiency services, water fittings regulatory compliance and standardised electronic billing.