Third party intermediary Open Energy Market has launched a platform to help firms switch water suppliers – and claims businesses can save up to 24% just by switching.
The company suggests switching levels have been depressed since deregulation last year because savings are perceived to be scant. Around 90% of businesses have not switched supplier, according to figures from regulator Ofwat.
However, Graham Mann, head of water services at Open Water Market, claims “savings of between 6 and 24 per cent are achievable simply by switching water supplier, that is, before the application of a water management strategy”.
Mann said water audits could deliver savings “on average of 20 to 30 per cent” and said companies should be aware that they can claim significant refunds due to historical overcharging by suppliers.
He said a lack of market awareness and perceived complexity is also behind low switching rates – which is why the company thinks there is a market for a streamlined, more transparent procurement platform.
Founder and chief executive, Chris Maclean, said the firm had always planned to offer water as well as energy procurement because the markets suffer from similar problems – complexity, inefficiency and opacity.
The company claims it automates a lot of the data legwork, strips out the smoke and mirrors and that its platform is “wholly transferable” to the water sector.
Earlier this year the company secured £3m funding from Calculus Capital to scale its operation and is also expanding into the US.