In brief...
From 1 April 2017, businesses, but not domestic premises, will be able to shop around for their mains water as part of the biggest shakeup to the water industry since privatisation in 1989. The NFU is seeking confirmation that farmhouses and farmyards will both qualify to switch water retailer.
From 1 April 2017, all businesses and public bodies in England will be able to shop around for their water and sewerage suppliers, an option only currently available to the largest users.
As economic regulator of the water sector, it is the role of Ofwat to oversee this transition, described as the biggest shakeup to the water industry since privatisation in 1989.
The NFU has responded to an Ofwat consultation relating to draft guidance on how water retailers should differentiate between businesses that will be able to switch their retailers, and domestic properties that will not.
We’re pleased Ofwat acknowledges that whilst farms typically serve as both the farmer’s home and place of business, the farm’s principal use will be acknowledged as business premises.
But we have sought clarity on the emphasis currently placed in Ofwat guidance on the payment of business rates as primary evidence for business use of premises, and asked for recognition of agricultural rating exemptions for the avoidance of doubt.
Meanwhile, many members will no doubt welcome the prospect of being be able to negotiate a new package with their existing supplier or switch to a new supplier. In some cases they may even be able to become a retailer and supply themselves by dealing directly with their local water wholesaler.
Paul Hammett, NFU national water specialist, says that members should carefully consider their own priorities for mains water before leaping into a new deal when the times comes.
“For some members, the new arrangements might be an opportunity to drive down business costs but for others the priority might be the level of service they can expect to receive – especially when things go wrong,” he said.