Although privatised in 1989/90, the water industry remains firmly regulated in order to compensate for the lack of choice or competition in supply. Consumers are protected by Ofwat, who take responsibility for imposing limits on price, setting high customer service targets, and encouraging greater efficiency among water companies.

Current hot topics in the industry centre around the investment required to update the old and failing infrastructure, the need to reduce the risk of flooding to properties, and the continued improvement in the quality of drinking water. Although contentious, the price increases agreed by the regulator in December 2004 have made allowances for substantial investment to deal with such problems.

Change is afoot, with more competition likely from 1 December 2005, whereby very large business (such as industrial sites) will for the first time be able to choose their water supplier.

Gas/Electricity:

Since 1998/99 all customers have enjoyed the freedom of a fully free market, affording the choice over gas and electricity supplier. Although only around 1/3 of households have switched supplier, competition in the market is rife. Price is clearly a paramount decision for customers; although energy suppliers are increasingly looking for innovative products and services they can offer, to challenge focus from price to value for money.

Over the last couple of years customers have witnessed several increases in gas and electricity bills; most recently increases in oil prices are to blame, and customers are now seeing the increases in suppliers’ wholesale prices trickle down into their bills.

Unsurprisingly then, fuel poverty is of major concern with 2 million households in the UK (in 2003) affected. Recent estimates expect a further 200,000 people will be at risk from fuel poverty due to latest (Oct 2005) price increases.