The service we offer to enable companies to switch business water supplier easily offers a seamless means of allowing you to change to a new supplier for whatever reason. This may include price, service standards or the level of help on offer to build resilience for the future.
Other considerations include the environmental performance of the provider, whom you may not wish to trade with if they are dumping sewage in local rivers, or their wider stability, with financially-stricken Thames Water in particular making headlines for all the wrong reasons.
Indeed, the last general election saw most of the political parties’ manifestos pledging stronger regulations to keep the water companies in line. After winning the election, Labour introduced a series of new measures through the Water (Special Measures Act) 2025.
- Ofwat were given the power to ban bonuses for the executives of water firms for performance failures, particularly pollution incidents.
- Ofwat was also given the power to bring criminal charges against persistent offenders.
- A ‘fit and proper person’ test for new executive appointments to water companies, effective from April 1st this year.
What Impact Has The Water (Special Measures) Act Had?
The measures have certainly had some effects. For example, in the first year since the new rules came in, Ofwat blocked £4 million of bonuses for executives whose companies were guilty of pollution offences.
However, there are some who would go further than just strengthening regulation, with many advocating the further step of renationalising the water companies, which were privatised in 1989.
Those who hold this view argue that strengthening regulation or even replacing Ofwat with a new body would not solve the issues in the industry. Significantly, one major advocate of nationalisation is the mayor of Greater Manchester, Andy Burnham.
This may not matter much in his current role, but Mr Burnham is now seeking to return to Westminster via a by-election in Makerfield, which lies next door to his former constituency in Leigh, after the present MP stood down to create the opportunity.
If elected, he will then launch his campaign to replace Sir Keir Starmer as Labour leader and prime minister, with Starmer being urged by scores of MPs to step down following dire local election results, including by Wes Streeting, who resigned as health secretary last week.
Should You Still Switch Water Supplier If Andy Burnham Becomes Prime Minister?
Should Burnham succeed, this could mean nationalisation plans are on the cards. For business water customers, that raises the question: Is it worth switching now if the companies are all going to be brought under the umbrella of the state soon anyway?
The answer is an emphatic yes. Firstly, this is because you can get the benefits of a better deal right away, whereas even if water nationalisation is to happen, it will take time. Secondly, it may not come to that.
Even before getting to the point where water could be back in state hands, several things would have to happen:
- Burnham will have to win the by-election, which is not certain, as Reform UK regards Makerfield as one of their strongest electoral prospects.
- He would then have to win the Labour leadership election, which is not certain.
- The leadership election process might not be completed before the autumn anyway.
- Following this month’s King’s speech, several bills will already be in progress, so it will not be easy in the short term to find the parliamentary time to bring forth the legislation.
- The legislation itself will take some considerable time.
Even allowing for all of these hurdles, the cost of buying up the water companies would be high, which means it might be done incrementally.
Which Water Company Would Andy Burnham Nationalise First?
Thames Water would be a prime candidate, as it would be something of a fire sale given its current financial state.
Indeed, it has been reported that insiders involved in talks between Thames and a potential takeover bidder fear the buyout may collapse over the uncertainty over the future of the company if Mr Burnham makes it to Downing Street.
All this is happening while the government under its current leadership is involved in trying to broker a deal.
Nonetheless, while the Thames situation is a clear sign of how things may change significantly, the full-scale renationalisation of water could still be a long way off.
Consequently, the best thing for your company to do is to consider, based on current circumstances, whether you can get a better deal than you have now. If that is the case, it still makes sense to go for it now.
In that instance, you can enjoy the benefits of a better deal, which may continue to serve you well even if the ownership of that company subsequently changes from the private sector to the state.
