Conclusion 19

To reduce water usage by non-domestic customers, including schools and hospitals on the public sector estate, the government introduced competition allowing customers to choose the water company they want to deliver their water services.38 Ofwat reported that the market has now been open for three years. It told us that, last year, the number of businesses that are engaging in the market and the benefits they are seeing in water efficiency are disappointing.39 Only 4% of consumers switched or renegotiated a deal during 2018–19, with 3% doing so in the previous year, and only 0.3% of switchers and 4% 29 C&AG’s Report, paras 16 30 C&AG’s Report, paras 3.4, 3.23 31 Qq 54, 60 32 C&AG’s Report, para 22 33 Q 60 34 C&AG’s Report, para 3.23 35 Q 54 36 Letter from Department to the Committee dated 15 June 2020 37 Q 58 38 C&AG’s Report, para 17 39 Q85 Water supply and demand management 13 of renegotiators have received water efficiency advice or leakage control services as part of the package of benefits.40 Ofwat told us that, last year, only about £10 million had been saved through switching. Ofwat and the Environment Agency, wrote to all retailers and wholesalers in March 2020, and asked them to think about what they can do collectively to improve water efficiency in the market. They are expecting them to produce a plan on this in the autumn.41 Measures to improve water efficiency