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Dec 24, 2023 •190 likes •366 views

Market deregulation is almost here: what you need to know Tony McHardy Corporate Director 23 rd March 2017 Agenda Water Plus: who we are Recap: Benefits of competition Whats happening in the market (competitive landscape)

  1. Market deregulation is almost here: what you need to know Tony McHardy – Corporate Director 23 rd March 2017

  2. Agenda • Water Plus: who we are • Recap: Benefits of competition • What’s happening in the market (competitive landscape) • How are Customers currently engaging ? • What are the opportunities for Brokers? • What should you be doing now ? • Summary

  3. Who we are….

  4. Company Overview 50/50 JV : Two of the UK’s largest listed Experienced staff : 19 Sector specific key • • water companies, United Utilities and customer account managers with more Severn Trent combined their existing than 150 years combined experience non-domestic supply arms into a new Retail Competition Pedigree : have been • legally separate business in June 2016 competing successfully in Scotland since UKs largest Customer base : currently 2012 and switched more than 10,000 • supply more than 450,000 supply points supply points across Scotland, NW & Midlands area England Switches : Have already • with an annual revenue around £1b delivered the largest Water only switches UK based Offices with Field Based in England • Experienced Account Management Value Added Services: have an • teams: Offices in Stoke on Trent and integrated ‘beyond the meter’ water Bellshill Glasgow with national coverage solutions team

  5. Water Plus is designed to meet business customer needs in an open water market In depth knowledge and expertise • Everything made easy • Personal service • Innovative services and products • AND Proactive approach to Water Management •

  6. Recap: Benefits of competition More retailers – 20 Licenses granted in England • More choice Brand values, company ethos, services on offer • Serving niche markets • Improvement to UK wide consolidation for multi site customers • Single points of contact for account management & billing • Service Multiple contact channels • Downward Lower cost to serve • More competitive offers • Pricing Simplified processes • Increased Investing in market leading systems • New products, services and online tools • innovation Water management services •

  7. The changing water market

  8. Interaction with the market is changing

  9. The competitive landscape Who’s rebranded? Who’s Exited? Who’s Taken Over? Others to look out for

  10. Retail margins & charges vary by region Margin variance across tariff bands Margin variance across regions (Example: Water 500m 3 20mm meter) (Example: average GMs by tariff band) End-user Charge (£) Margin (%) Retail GM (%) Wholesale £1,200 2.9% £1,000 10.5% 5.4% 8.4% 6.1% £800 5.5% £600 12.3% 11.9% £400 £200 Volume £0

  11. Marketing activity is increasing

  12. What are customers doing? “ We are very happy with the service we “We will switch for a receive and see no point in switching saving of £10,000+” suppliers, we won’t be actively seeking a competitor offer.” Beverage distribution business Large food manufacturing business “We are happy…and have no reason to switch…however we are There ere is an int ntern ernal al deba bate about bout the he risk to required to follow the OJEU water er quali uality/supp pply ly vers rsus us the e advant dvantages ges of procurement process.” swit itching hing, with h that at in mind nd there here would uld have to be a good case put forward … to consider Public Sector Organisation switching from the incumbents” “ Won’t look to do anything until Global manufacturing business after the market opening - where we will look for one single supplier at some point.” “ Will wait approx. 6 months for the market to settle down before looking for national supplier” UK (Iconic Brand) manufacturing business National multi-site service provider “Water contracts are not currently on the radar due to minimal savings. However the drivers for switching suppliers would be to maximise any VAS opportunities across the sites.” Global food manufacturing business

  13. What competition means for Brokers/TPIs Offers a potential income stream • Can be seen as a ‘bolt on’ to existing services • supplied Retention tool to protect your energy • revenues Some Retailers may be looking for ‘white • labelled’ services to help deliver against propositions Saving water = saving energy •

  14. What should you be doing? 1. Plan ahead, engage suppliers 2. Get data smart, 4. Be clear about how you create a level are going to evaluate playing field offers 3. Be realistic, compare What do your Customers with current energy deal value?

  15. What differentiates retailers? The difference in price between retailers is likely to be around 0.5% The difference a good retailer can make is 5 – 15% through a proactive approach to water management; efficiency savings; personal relationship; peace of mind; an easy life.

  16. Summary • Its not just about price • Make sure you’re engaging with suppliers • Be data ready • Be realistic

  17. Thank you for your time 24 th February 2017 Want to chat? Come and meet the team

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