The research, by SES Business Water and YouGov, found that while 91% of SMEs described themselves as cost-conscious, and 100% said that being cost-conscious is an important attribute, only 39% have looked to switch providers of other services, including IT, pensions and stationery.
Since April 2017, businesses and organisations in England no longer have to buy their retail water services from their regional water company, and can choose one retailer for their water and another for wastewater services, or just one for both. Small businesses that switch can expect to see a reduction in their water bills, and may also see further cost reductions through the identification of abnormally high levels of consumption. In addition, having the freedom to switch gives small businesses the chance to choose a company with a better customer service record than their current supplier.
Despite this, none of the manufacturers in the survey, which involved 757 small businesses from a range of sectors, had switched their water suppliers since deregulation. This is despite the fact that over half (51%) had switched energy providers in the previous 12 months.
“Small businesses play a significant role in the country’s economy, but it can be challenging for them to grow and prosper,” said Max Langford, commercial director of SES Business Water. “Therefore, they need to be shrewd when it comes to their spending behaviour, especially in today’s uncertain times.
“However, their inactivity in terms of switching suppliers of key products and services could mean they are missing out on a range of important benefits – for water, these include cost, efficiency and resource savings, and better customer support.
“Small businesses in the manufacturing sector are far more likely to switch energy supplier than their water supplier, even though switching water could reduce their costs. It’s clear that more must be done to raise awareness of the open water market among small businesses so they can actively engage in it.”
