# Stay ahead of the tide of water deregulation; understanding the water shadow market

- Link: https://imserv.com/news-and-events/stay-ahead-of-the-tide-of-water-deregulation-understanding-the-water-shadow-market/
- Published: 2019-10-01T17:42:24+00:00

### ⏎ April 2017 brings with it the biggest reformation of the water industry in living memory. Currently, non-domestic users are only able to use their local supplier for all of their water needs, irrespective of the level of service they are receiving. Post April the water market will become deregulated, allowing businesses, charities and public sector organisations the freedom to select the water supplier that best fits their needs.

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Whilst this change has been on the cards for a long time, Richard Roberts, Account
Manager at IMSERV Europe Limited, believes that some businesses are making the mistake
of waiting until the deadline before securing their new water contract. By seeking
timely advice now, companies can secure the best deal available to them, before 
the big rush to make the switch next year.

“We’ve seen the success of water deregulation in Scotland already, with some companies
reporting _savings of up to 30% on their water bills_,” commented Richard. “However,
some companies are lagging behind their competition and holding back on signing 
on the dotted line. These businesses may find themselves scrabbling for a favourable
deal come April and accepting a contract which is not necessarily the best fit for
them.”

In order to prepare businesses and suppliers alike, Market Operator Service Limited(
MOSL) is running a ‘Shadow Market’ in the run up to deregulation in April. MOSL’s
role is to deliver the operational capabilities required to support the running 
of the deregulated market. The Shadow Market is a transition phase and will simulate
live services to allow systems, processes and data collection to be trialled without
commercial risk.

Deregulation is coming regardless of whether companies actively choose to take part
in the Shadow Market or not. Companies that don’t prepare, or choose not to review
their water supplier, may find themselves automatically migrated onto a service 
which is unsuitable for their business. Additionally, as some operators are leaving
the market altogether, some businesses may find that they are passed onto a service
provider not of their choosing.

IMSERV, one of the UK’s largest energy and data management providers, has been offering
water efficiency services as part of its portfolio for some time. It has been encouraging
its customers to make the most of the Shadow Market, so that they can test the systems
and processes which will come into force with deregulation.

Richard continued: “Although it is still too early to determine the long-term success
that water deregulation will have on the UK market, the Shadow Market is off to 
a promising start. The true benefit that businesses are reaping by taking part is
the freedom to test out processes and systems without commercial consequences. Water
companies are able to trial how meter readings will work, experiment with tariff
changes and switch suppliers, but no money will be transferred during this period
as contracts will not commence until April 2017.”

“Although April may feel like it’s just around the corner, there is still plenty
of time for those offering water services to ensure their customers experience smooth
sailing during the switch. Ultimately, the Shadow Market is a chance for the main
participants to reassure themselves that the UK water market is prepared for this
change, has looked at the effect that deregulation has had on the Scottish market
and taken learnings from the process.”