Water Plus:A Momentous Year in the Water Industry

• Introduction

• The new water market

• Market opening and beyond

• What it means for you• How to thrive in a deregulated market

Agenda

The industry had a lot to get ready…

MobilisationSystem

design

System

build

User

testing

Shadow

operations

Market launch

Sep Dec Mar Sep Apr

• Licences published

• Ofwat/MOSL planning letter submitted

• Companies completed risk assessment, operations, data and IT for compliance

• Connectivity with market operator completed

• Corporate audit completed

• System and process user testing

• Data validation and upload

• Company readiness and

certification

• Board statement

2015 2016 2017

It’s been a busy year for retailers

2016 Where we are today

• Wholesaler/Retailer separation • Development of retail

businesses (brands, names, locations)

• Separate IT and billing systems• Industry system integration• Getting market ready and

compliant

• New brands launched• Offices kitted out, people

recruited and trained• Customers transitioned to new

retailers• Data migrated • Market ready, completed

assurances and acquired licences

A little about us…

Water Plus has been specifically created to meet the water service needs of

business customers and organisations in the open water markets in England

and Scotland.

The English water market opened for competition in April 2017.

The water market now operates in a similar way to other utilities such as gas, electricity & telecoms.

What the open market means and how it works

How water prices are set

• The amount that both Wholesalers and Water retailers can charge are approved by the Water Regulators (OFWAT & WICS).

• Wholesale tariffs vary by region and by volume consumed.

• Wholesalers charge all retailers the same price.

• In the open water market if you have not negotiated a contract with a water retailer you will pay the ‘Default Retail Tariff’ also known as a

Deemed Contract.

The market allows you to choose a retailer and negotiate a tariff in term for entering a contract. - - - Defined term, payment terms and additional services.

Your water bill is a combination of:

•Wholesale costs

•Retailer service costs.

How your water bill is calculated

Water Plus retail tariffs

Water Plus offers two tariff options for larger water users.

Wholesale Plus - We use the wholesale costs and

agree a management fee with you to cover the cost of providing the water retail services.

- The management fee is normally

expressed as a % of the wholesale costs.

Default Minus - We use the Default Retail Tariff and

apply a fixed discount. - The discount is usually expressed as a

% of the Default Retail Tariff.

Water Plus proactive water management

Dedicated

Account

Management

Bills how you

want them

Management

information

Easy account

switching

Water

efficiency

advice

AMR & smart

metering

Leak

detection

and repair

Contingency

planning and

emergency

water

The story so far

Largest competitive Water Retail market in the world goes live:

4% of large users

have switched

30% market priced

by revenue

1.8% of the market

has switched (over

50,000 SPIDS)

70% market

awareness in

our area

Market Opportunities

Improved Pricing

Supplier Consolidation

Enhanced Billing

Services

Tariff Optimisation

Reducing Water Usage

Improving customer service

Innovative

products

and services

Better value,

service &

price

Seamless

cross-UK

market, giving

simplified bills

Pain free

switching

process

Water Plus benefits for you

What you can do to get ready to switch

Step 1

Understand the market

Step 2

Evaluate your data

Step 3

Assess your options

Step 4

Decide on requirements

Step 5

Be ready to switch

Thank You

Questions?