Time to Get Serious About Water: Why It Matters Now

Welcome, Net Zero News readers! Today, we delve into a pressing issue that affects not only our environmental goals but also the very foundation of our water market in the UK. As we navigate the challenges ahead, it’s crucial to understand how the water industry is evolving and what it means for sustainability and our collective future.

The water market in the UK is at a pivotal moment, with organisations and policymakers beginning to treat water with the urgency, respect, and innovation it desperately needs. The recent Waterscan’s State of the Water Market 2024 report has shed light on the current landscape, revealing a marketplace that, while technically open to competition, is hindered by structural limitations, a troubling lack of data transparency, and a prevailing culture that still considers water efficiency as merely a “nice to have” rather than an operational necessity.

However, there are signs of real progress. An increasingly powerful coalition of voices is calling for reform, recognising that the issues at hand are not new but have become impossible to ignore. With rising drought risks, tightening regulatory pressures, and escalating water costs—once negligible on balance sheets—organisations are starting to feel the financial and reputational impacts of water mismanagement. The era of cheap and abundant water is swiftly coming to an end, and those unwilling to adapt will find themselves paying the price in multiple ways.

What we need now is not just compliance but visionary leadership.

A Market Open in Theory, but Not in Practice

The deregulation of the water market in England in 2017 was hailed as a step towards allowing non-household customers the choice of their water supplier. Yet, eight years on, the promised competitive, customer-driven market remains largely unrealised. Switching rates are alarmingly low, customer satisfaction stagnates, and many businesses are unaware that they even have a choice.

The root causes of this stagnation, as highlighted by Waterscan’s research, include a lack of transparency regarding pricing and performance, limited innovation from suppliers, and a regulatory framework that fails to incentivise efficiency or penalise waste. For far too long, the market has tolerated mediocre service and rewarded complacency.

However, this status quo is no longer tenable. Water is emerging as a strategic issue, particularly for large, multi-site organisations. Its implications stretch far beyond basic utility costs, influencing ESG performance, climate resilience, and long-term financial exposure. There is an increasing demand for greater insight, flexibility, and support—demands that are not being met by the current market setup.

Data is Power—And Too Few Have It

One of the most significant barriers to progress is the pervasive data deficit within the market. Accurate and timely consumption data is the cornerstone of any effective water strategy, yet many businesses find themselves operating in the dark. They receive infrequent, estimated bills and lack clarity on where, when, and how they use water.

This absence of robust data is more than just an inconvenience; it poses substantial risks. Without reliable data, identifying leaks, benchmarking performance, or making a compelling case for investment becomes an uphill battle. Furthermore, it undermines trust in the market and stifles meaningful competition.

Encouragingly, some organisations are taking matters into their own hands by installing data loggers and collaborating with independent experts to gain clearer insights into their water usage and associated risks. However, this piecemeal approach cannot replace the need for market-wide transparency. Ofwat and the Market Operator Services Limited (MOSL) have acknowledged these challenges, and now is the time for coordinated action.

From Afterthought to Shared Priority

One of the most encouraging trends highlighted in Waterscan’s report is the increasing maturity of non-household customers’ attitudes toward water. Efficiency is no longer the exclusive domain of sustainability teams; it is now a topic of discussion across all levels of public sector departments and committees.

This shift is being catalysed by various factors: the significant rise in other utility prices, which makes water cost control more appealing; the expansion of ESG reporting requirements; and a growing awareness of the reputational risks associated with poor water stewardship. In commercial sectors such as hospitality, retail, and manufacturing, water use is now recognised as a core operational issue rather than just a compliance checkbox. The public sector is quickly following suit.

Progressive organisations are beginning to pose smarter questions: How can we establish meaningful reduction targets? How can we eliminate waste in our processes? Is it feasible to reuse greywater or harvest rainwater? How do we measure success in our water usage?

While these questions do not have straightforward answers, their emergence marks a crucial first step toward genuine progress.

The Role of Independents

Given the constraints of the current market structure, it is unsurprising that numerous businesses are turning to third-party consultants to help them navigate their water strategies. Independent consultants and water managers are increasingly leading the charge in innovation, providing services that range from auditing and procurement to real-time monitoring and demand-side management.

This trend indicates a clear desire for more than what many licensed suppliers currently offer. It also suggests an evolving market model, one that is less reliant on traditional retail competition and more focused on collaborative, consultative partnerships between organisations and experts capable of unlocking hidden value.

Several local authorities have already taken proactive steps to gain better control over their water usage and costs by becoming self-suppliers. Blackpool Council was one of the early adopters, switching to self-supply to enhance efficiencies and support broader sustainability goals across its public estate. Sefton Council has since made considerable strides in its water management journey, utilising self-supply to identify and address leaks, improve data visibility, and embed water-saving practices into everyday operations.

Time to Make Water Count

Ultimately, water is not merely a resource; it embodies risk, opportunity, and responsibility. The 2024 Waterscan report should act as a wake-up call for everyone involved in the water business—from regulators and retailers to facilities managers and CFOs.

If we aspire to create a water market that is transparent, innovative, efficient, and resilient, we cannot continue with the status quo. What is required are bold reforms, smarter regulations, better data, and a cultural shift in how we value water.

The silver lining? Momentum is building. Organisations are prepared to take the lead, and policymakers are increasingly receptive to change. With the right focus, 2024 could very well be the year when the water market begins to fulfil its promise.

Interested in learning more and continuing the conversation? Join Waterscan at its annual Water Matters conference in London on 19th June 2025 to drive change in water sustainability.

For more information, visit www.waterscan.com.

This article first appeared in the April 2025 issue of Energy Manager magazine. Subscribe here.

This revised article maintains the core message of the original while ensuring it is reader-friendly and engaging for the audience of the Net Zero News Network. The structure is enhanced with appropriate headings to facilitate easy reading and understanding.