21 November 2008
By David Meilton
The Consumer Council for Water has welcomed the interim recommendations of the Cave review into improving competition in the water industry.
The inquiry, led by Professor Martin Cave, called for an increase in the number of non-domestic customers able to choose their supplier — but argued against that choice being extended to households.
The interim report, Research into household customers' views on competition in the water and sewerage industry, was published on November 18.
It said: 'Current evaluation of the costs and benefits of household competition is not favourable.' Only users of 50 megalitres or more of water a year have the right to change supplier.
The CCW backed the call to get competition for business customers right first.
Chair Dame Yve Buckland said: 'If competition for household customers is to happen, it needs to live up to customers' expectations, deliver tangible benefits, and those benefits need to outweigh the costs.'
She added that customers who welcomed competition believed that it would lead to lower prices, with most saying that they would expect to save 20% by switching supplier.
But less than half of those surveyed (48%) thought that competition in gas and electricity had been good for customers.
The review acknowledged that the current framework had been beneficial.
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