How to Switch Your Business Water Supplier

In an era of endless consumer choice, it can be easy to forget that businesses are consumers too. But for many years, the ability to change water suppliers was something that was not permitted for anybody. However, since April 2017, more than 1.2 million new eligible customers - defined by the government as “non-household premises that pay business rates” - have been able to do exactly this. 

Of course, the exact benefits of switching suppliers will vary depending on the specific needs of your business. However, in a competitive marketplace, customers can now negotiate with retailers for the best prices and choose a service package that suits their needs. In addition to greater choice, customers can expect to save money and water through lower bills and improved water efficiency.

Can I Switch Business Water Supplier?

There are conditions, but as long as the principal use of the premises is non-residential and liable for business rates, and isn’t eligible for council tax (further checks are carried out if it is), then you should be good to go. You can find full details in the government’s last official guidance on the matter.

Why Would I Want to Switch My Business Water Supplier?

There are three main reasons why you may consider switching water suppliers: cost, customer service, and tailored solutions.

Changing your business water supplier will require some work from your end. If you're looking to save money on your water bill, you'll need to obtain quotes from as many suppliers as possible and thoroughly understand the needs of your business. 

However, some of your preconceptions about making this change may be somewhat outdated. Many may worry about the amount of time that making such a change will consume, for example, but it is estimated that it should take no longer than a month to complete. 

What are the Benefits of Switching Your Business Water Supplier?

So if cost, customer service and tailored services are the most common reasons for businesses changing water suppliers, what are the potential benefits of doing so? 

Cost

Unsurprisingly, in a competitive marketplace suppliers may charge different rates, and any business should be looking for ways to reduce their expenditure. Shopping around may well have benefits for businesses looking to save money.

Customer Service

If an organisation feels like their water supplier is not communicating effectively or doing their tasks as expected, they may feel this is a big enough reason to start searching for a different supplier that places a greater emphasis on customer service.

Tailored Solutions

There may be times when an organisation will outgrow its current water management solutions. If they require new solutions that their current provider does not offer, they may have to move and find one that matches their needs.

Six Steps to Successfully Switch Your Business Water Supplier

Of course, it is possible that you already have the best deal available with your business water supplier, and the first step towards changing suppliers should be to identify your own business's needs. 

Assessment Phase

One of the best ways to determine whether switching water suppliers is the best option for you is to conduct a business water audit. This is a strategic service which can help bring your water costs down while also providing solutions to maximise efficiency. It's conducted by a professional auditor, who'll visit a company's premises and assess water consumption levels. 

Water audit services also help business owners to avoid the most common errors associated with water charges, such as duplicate invoices, billing errors and estimated readings based on the rateable value. The advice provided can help organisations identify past losses, which can also help them to make cost-effective changes to future workspace water consumption. In an era of ESG (Environmental, Social, Governance) policy, a drive towards water efficiency can also provide a credibility boost when it comes to sustainability.

But this isn't necessary; research potential suppliers based on services, rates, and reputation. You should be able to get quotes based on your current usage from all suppliers, giving you an idea of how the competing suppliers compare to each other. 

Comparative Analysis

Ensure that you compare the total cost of ownership (TCO) of each supplier. TCO is a measure of the total cost of acquiring, using, and maintaining a product or service from a supplier over its lifetime. It includes not only the initial price, but also the ongoing costs, such as maintenance, repairs, upgrades and support. TCO can help you evaluate the long-term value and performance of each supplier, thereby avoiding hidden or unexpected costs. You can use a TCO calculator or spreadsheet to compare the TCO of each supplier based on the quotes and your own estimates.

Also, bear in mind that the cost of the water itself may not be the only factor that matters. Quality and reliability are important factors that affect the value and satisfaction of a product or service. They can also impact the TCO, as poor quality or reliability can lead to defects, delays, complaints, returns, or lawsuits. You should assess the quality and reliability of each supplier by checking their credentials, certifications, references, reviews, and samples. You should also consider their reputation, experience, and customer service.

Contacting Potential Suppliers

You should request quotes from at least three suppliers to have a basis for comparison. You should also ask for detailed and itemised quotes that break down the costs of each component of the bill. This will help you understand how the supplier calculates the price and what factors influence it. 

Requesting quotes can take some time, but we're here to help. Use Switchpal's handy business water quotes tool to get quotes from top providers - saving you time and money, and making the water supplier switching process easier.

Contract and Terms Review

Contracts are legally binding documents, so be sure to carefully read the terms and conditions before signing anything. In the event of a dispute at a later date, courts will not accept “I didn't read the small print” as a valid legal defence. Unlike consumer contracts, 'cooling off' periods after signing the contract seldom exist, though there is a 7-day one for microbusinesses that has been built into the regulation of this new market, and you may be able to negotiate the inclusion of one as part of negotiating your contract with them in the first place. Pay particular attention to any 'cancellation rights' which may be in the standard terms and conditions. 

Notifying Your Current Supplier

Your notice period depends on your contract, so check its terms carefully. In practice it is commonly around 30 days, though some contracts require longer. It is critical that you give notice formally within this window, as failing to do so before the contract end date can result in you being automatically rolled into a deemed water contract with your existing supplier at an uncompetitive rate. Make sure that you do this in writing with a termination letter, including the following:

• The water retailer's address

• Your company's registered address

• The contract number

• Your meter numbers

And given the potential costs, should you end up in a dispute with your former supplier, make sure that you keep copies of all correspondence.

Switching Process

Ensure that you are aware of your cut-over date, which is the date specified in the Transition Plan corresponding to when the transfer of the service occurs, meaning that the new water supplier will assume full operational responsibility for the performance of the service you have requested. This will help you in knowing who to contact if anything goes wrong during the transition period.  

Switching Business Water Supplier FAQs, Considerations and Challenges

Your new supplier should be able to alleviate any concerns you may have about potential issues during the handover. 

However, switching retailers should be a seamless process if done correctly. The same pipes and water will be supplied to your business when switching; it is just the retailer that changes. Supply will only be terminated if you continually fail to make payments to a retailer.

What Factors Should I Consider When Comparing Different Water Suppliers?

The most common reasons for businesses changing water suppliers are cost, the quality of customer service, and having specific requirements relating to a business's water supply that an existing supplier cannot (or will not) fulfil. Consider their billing terms, the flexibility of their contract, and the contract's duration. 

Are There Any Penalties for Switching Before My Current Contract Ends?

For most contracts, you'll need to give notice before leaving early. In some cases, such as on a 3-year fixed deal, you may have to pay an exit fee to switch to another retailer. Information regarding early departure from your retailer will be included in your contract. If you're unsure, contact your retailer's customer service desk for the terms of your exit.  

Can I Negotiate the Terms With the New Supplier?

Water companies must provide access to your supply systems on reasonable terms, and there is plenty of scope for negotiation. Some suppliers may offer value-added services, such as leak detection or water usage reports, which can benefit your business operations when you switch to a new business water supplier.

How Long Does the Switching Process Typically Take?

The average time required to switch business water suppliers is around three to four weeks, and it should certainly not take more than a month. The specifics of the changeover process may be something that you should consider when you're comparing suppliers in the first place.  

Will I Experience Any Interruption in Water Supply During the Transition?

You shouldn't, so long as you maintain payment to the previous supplier until the transition has been completed. Before the transition, speak with your new supplier and verify whether they have contingency plans in place for such scenarios. For worst-case scenarios, consider emergency provisions such as wholesale bottled drinking water, bulk water tankering, storage tank and temporary supply infrastructure rental.  

How Do I Notify My Current Supplier About the Switch?

By writing a formal termination letter which includes the water retailer's address, your company's registered address, the contract number and your meter numbers. Don't forget to keep a copy of everything you send! 

Are There Any Government Regulations I Should Be Aware of When Switching to a New Supplier?

The water supply in the UK is highly regulated, ensuring you receive a high-quality service at a good price. Micro-businesses have a 7-day cooling-off period from when they sign a contract with new suppliers, which is far from standard in business contract law, while government regulations require that water suppliers charge a fair price. 

Many UK businesses are paying more than they need to for their water, with savings of up to 30% possible in some cases. If there's one thing we all know from dealing with companies that sell contracts, it's that there are seldom many rewards for staying with the same one for years. With more than 1.2 million businesses eligible to switch water suppliers, it's time for you to explore how you can save money and get a water supply that better suits your business needs.