trevi: Guaranteed Protection of Margins for Water Retailers
A recent article, published by Utility Week (login may be required), provides a useful round-up of the main issues and challenges facing water retailers fifteen months into the open market for non-domestic water in England.
While customers are beginning to benefit from a more open, competitive marketplace, water retailers continue to grapple with challenges resulting in higher costs and lower margins.
One of the major concerns is inaccurate or incomplete data with 43 per cent of chief executives and managing directors surveyed stating that quality or completeness of data was their main concern. This increases costs and acts as a major barrier to switching.
As stated in a previous Utility Week article, Water Retail Market: Reflections on the First Year:
“The paucity of data quality across the industry has become a major problem for water retailers who have placed accurate billing at the centre of their offering to customers. Addressing this issue is now critical”
Other concerns include the low level of market knowledge and switching, especially by SMEs; the lack of interaction between wholesalers and retailers; the absence of a level playing field; the complexity of the wholesale tariff; low retail margins to allow retailers a ROI; and issues relating to market structure, conduct and performance – also, see Open Water: Reflections on the First Year.
Unresolved, these could prevent the open market from realising its full potential.
trevi, Bridgeall’s best-in-class billing software, provides a one-stop solution to many of the key pain points currently being experienced by water retailers in the recently deregulated, non-domestic English water market.
It enables water retailers to accurately bill their end-customers, comprehensively protecting retail margins in the process. Specifically, data changes received from wholesalers which impact previously issued bills are a major source of profit leakage for retailers. On receipt of such data changes, trevi automatically recalculates the relevant previous bills and either re-credits/re-invoices or updates credit balances thus guaranteeing retail margin.
Uniquely incorporating charging algorithms from CMOS (the Central Market Operating Solution), trevi accurately calculates any tariff covering both water and sewerage, including trade effluent, a complex issue for large, high-value customers.
Please do not hesitate to contact us for a free demo of how trevi can deliver guaranteed protection of margins for water retailers.
More details can be found on the trevi page of the Bridgeall web site.