Dawn of the Utility Triple Play?

With the fast approaching water retail competition for business customers coming to fruition in April 2017 a number of interesting dynamics are potentially going to materialise. Notwithstanding the initial challenges all the existing water companies will have to grapple and come to terms with around transforming their businesses in anticipation of market go live, one key dynamic will be new entrants into the market.

New market entrants, who potentially could be waiting in the wings? Who might be investigating moving into the water retail market? Straight away certain sectors spring to mind who are already operating in these types of market space, and as such already have much of the required infrastructure in place and understand the dynamics of how to successfully operate in these competitive market spaces. Typically, companies in the electricity and gas retail space along with telco operators, who would appear to be the likeliest new players?

As if to validate this point, Ecotricity, although ruling themselves out of entering the water retail space, for now, citing their requirement to concentrate on their core energy business, does illustrate the point that new market entrants are giving consideration to entering the new water retail market.

In light of these potential new entrants, and more importantly the areas they already operate in, could we see, what up to now has been a typical telco space offering, the ‘triple play’ (ie video, voice & data)? Could we see a new entrant to the market who offers a utility triple play of electricity, gas and now water to business customers as a bundled service offering? Is this a natural progression of the now common dual fuel offering?

This type of offering could present some interesting differentiator dynamics, especially in the areas of tariff innovation, and thus cost along with perceived customer single point of contact benefits for all utilities. When looking at different business customer demographics it’s quite easy to see the utility triple play offering appealing to the larger volume SMEs, where cost and simplicity would be key drivers in the provisioning of utility services. Large volume water users and multi nationals will present more of a challenge as they will be looking at a larger criteria of requirements than SMEs, so any potential new entrant looking at offering a utility bundled service will face the challenge of needing to broaden out their offering accordingly.

It will be interesting times ahead – monitoring over the coming months the emergence of any new entrants into the market, their background and planned strategies and, who knows, maybe we will see the Dawn of the Utility Triple Play!