Robert Gazely, farming consultant and partner in the Chelmsford office of Strutt & Parker, says the introduction of a competitive water market may offer farmers an opportunity to reduce their water costs and benefit from improved levels of service.

“Currently, only customers using in excess of 50 million litres of water per year are entitled to choose their water provider,” says Mr Gazely.

“However, the government has decided that from 1 April 2017 other business customers will also be able to pick who they buy their water from, much like they can with telecoms, electricity and gas.

“The government has estimated that opening the market could deliver more than £200 million in overall financial benefit to the UK economy, through better water-efficiency, lower bills, and more tailored services.”

Mr Gazely says major water suppliers such as Anglian Water, Thames Water, Severn Trent and United Utilities have developed separate business divisions in order to compete in the new open water market. A list of all the providers operating in the market can be found on www.open-water.org.uk.

“Farmers will be free to choose their retailer by looking at who has the best deal for them. While it is not possible to make the switch until April, businesses can start to look at the options now,” he says.

“However, a sensible first step before you contact anyone for a quote is to carry out a water audit, so you really understand your usage and how much it is currently costing you. You should then look ahead and think about any changes you might be considering to your business which might increase or decrease your water consumption.

“Farmers should also think about what they want from their provider. If the priority is to cut costs, then you might be happy with someone who offers a very transactional service.

“However, if you want a supplier that will be helpful, easy to contact and can help you improve water efficiency, then you need to ask questions to see if they meet your needs.”

Mr Gazely says the opening up of the water market will particularly benefit businesses with multiple sites – as they will be able to choose one supplier for all sites and receive a single bill.

“This is a welcome change, however, farmers and landowners will need to be proactive in seeking the best supplier in order to benefit their bottom line. Farm businesses are frequently significant consumers of water and despite rainwater harvesting and abstraction rights, a significant proportion continues to be drawn from mains supplies.”

In Scotland, all businesses have been able to switch their water and wastewater retailer since 2008.