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52 BREWING BEVERAGE INDUSTRIES BUSINESS Resources - Water Commercial customers have often been neglected by water companies and the regulatory system alike. Water charges are complicated and vary from one water authority to another. Often a necessity businesses and organisations see their water charges as a fixed and given cost. However water authorities have consistently been found to be charging their commercial customers incorrectly. Currently operated as a series of regional monopolies only the largest users usage of more than 50000m3 per annum are given the opportunity to switch suppliers whilst the only option for other businesses unhappy with their supplier has been to complain or withhold payment. Since business customers can have their supply stopped if they fail to pay non-payment isnt really a valid option leaving them somewhat powerless. A nightmare for brewers with different sites who have had to deal with a plethora of suppliers. Currently customers are able to review their charges to establish whether or not they are being charged correctly and if errors can be identified then their rates can be adjusted and refunds going back 6 years can be claimed. There has for some time been a compelling argument for deregulation in the water industry. In 2008 the Scottish water market was deregulated. The increase in competition meant that consumers enjoyed cheaper prices Business Stream a licensed water provider made 30m worth of discounts available and better billing. As well as water efficiency savings there was also a marked increase in customer satisfaction. All very well I hear you say but what about England The good news is that from next year April 2017 the whole business market is due to be opened up for the very first time as water in England is due to be deregulated Wales has opted out. Moving forward businesses and organisations will be able to choose their suppliers and will start to reap the many benefits that competition will bring. Since the Scottish market was deregulated in 2008 supplier discounts have grown up to 25 - businesses in England could be set to enjoy the same benefits. In the face of competition suppliers keen to retain customers and attract new ones will probably offer more competitive pricing and organisations may well find themselves on the receiving end of improvements to bills multiple sites will receive one bill as opposed to several and customer service. So what exactly will happen in 2017 Essentially the water supply will stay the same but the company that bills you could if you wish change. As in the energy sector you will have the option to switch water suppliers to any company that is a licensed provider. Simple and painless it would be a seamless transition without interruption to your supply. As a brewer you are more likely to be either a single or a multi-site but one thing is for sure you will have a high spend and will therefore have the highest potential gain as companies keen to keep customers will be adding value improving services and simplifying the billing process. A real advantage for multiple sites will be a reduction in your time spent on admin. Consolidated invoicing could well mean twelve invoices a year from just one water supplier as opposed to the current system of monthlyquarterly invoices from a range of suppliers. Your needs Increased competition will no doubt result in companies offering a range of products and improving customer service as well as delivering innovations in metering and water efficiency. As a brewer now really is the time to start thinking about what you would like from your water provider. Would one accurate and timely bill for multiple sites for example help you to manage your cash flow more effectively Dont wait act now Although the change is set to take place from next April current suppliers have to confirm their intention to remain in the market and new suppliers will have to set out their stall. Businesses will also be given the opportunity to switch to a new supplier those companies that do nothing you will simply stay with their current supplier. So now really is the time to act and to start thinking about your supply. A water cost management specialist is a great place to start and will put you in pole position when the de-regulated market arrives next year. Would you benefit from a review of your water charges Most definitely THE SEA OF CHANGE Kim Harris is a cost reduction specialist with Business Savings Experts an independent consultancy that specialises in reducing business costs in essential expenditure areas such as Energy Telecommunications Insurance and a number of other services. B.S.E.s team of specialists has a wealth of industry knowledge and its FREE no obligation audit will quickly determine if your water costs are accurate and appropriate for your usage. Dont pay more than you need to - get in touch to find out how B.S.E. can help you. www.businesssavingsexperts.co.uk contact-us 52_Layout 1 21042016 1501 Page 1