What is Water Market Deregulation (Open Water)?

Business Water Glossary

What is water market deregulation (Open Water)?

Water market deregulation is the reason your business can shop around for its water supplier at all. Since the market opened, well over a million businesses have been free to choose who bills them for water, just as they can for energy.

Here’s what changed, when it happened, and what it means for your business.

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What deregulation means

Deregulation, often called market opening, or “Open Water” in England, separated the company that supplies your water from the company that bills you. The wholesaler still owns the pipes and supplies the water, but you can now choose your retailer: the company that handles billing, service and meter reads. That choice is what creates competition on price and service.

When it happened

Scotland led the way, opening its non-household water market in 2008. England followed in April 2017, giving around 1.2 million businesses, charities and public bodies the right to choose their retailer. Wales hasn’t deregulated in the same way. Most Welsh businesses still can’t switch, which is an important exception to be aware of.

What it means for your business

If you’re in England or Scotland, you can switch water retailer for better service, a single bill across multiple sites, clearer account management or a sharper price. Switching doesn’t touch your actual supply. Same wholesaler, same pipes, same water. It only changes who you deal with. For sites in Wales, the old rules still apply.

What changed in April 2017

Before 2017, an English business took whatever water company served its postcode and that was that. Since April 2017, eligible businesses in England can choose who retails their water, the same way they already chose their energy supplier. The company that treats and delivers the water didn’t change. The company that bills you and manages the account is now yours to pick.

That split matters. Deregulation opened up the retail layer, not the pipes. Your water still arrives through the same regional network. What’s competitive now is the service wrapped around it, including billing, account management and the retail margin built into your rate.

What deregulation means for your business

In practical terms, you can compare business water suppliers and move to one that suits you better. For a single site that might mean a clearer bill. Across several sites it often means consolidating everything onto one account and one renewal date.

The switch itself is designed to be low-friction, with no interruption to supply. The water keeps flowing exactly as before. The only thing that changes is who you deal with and what you pay them on top of the wholesale cost.

Where deregulation applies across the UK

England has had an open retail market since 2017. Scotland got there earlier, opening in 2008, and runs its own separate market. Wales is largely closed, with only the very largest users able to switch.

So the answer to “can I switch” depends on where your sites are. A business spread across England and Scotland can usually move both. A site in Wales may not have the same option, which is worth knowing before you start comparing.

Water deregulation FAQs

What is water deregulation?

It’s the opening of the business water retail market to competition, letting businesses choose the retailer that bills them rather than being tied to the regional water company.

When did the water market open?

Scotland in 2008 and England in April 2017. Wales has largely not followed.

Can every business switch water supplier?

Businesses in England and Scotland can. Most businesses in Wales still can’t, as that market hasn’t been deregulated in the same way.

Does switching change my water supply?

No. Your wholesaler, pipes and water stay exactly the same. Only your retailer and billing change.

Can every business switch its water supplier?

Most businesses in England and Scotland can. Wales remains largely closed except for the largest users. Eligibility comes down to where the site is and how much water it uses.

Did deregulation change who supplies the actual water?

No. The regional wholesaler still treats and delivers the water through the same network. Deregulation only opened up the retail side, meaning billing and account management.

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