THE water industry regulator is being urged to investigate whether one of the companies involved in the newly deregulated sector has already withdrawn from the market.
Industry sources say customers of Aquavitae, a Berkshire-based business, want clarification on its trading status.
It is one of four companies so far providing competition to Business Stream, the business trading arm of Scottish Water, since the m
arket was opened up on April 1.
Edgar Speak, a director of the Central Market Agency (CMA), which authorises licences, said: "Customers (of Aquavitae] that have talked to me over the last 10 days say they have withdrawn from the market in England and Wales and in Scotland, but nothing has yet been confirmed."
Speak, who is also a director of rival firm Satec, said he had heard that staff had left the company on May 6 and he expected an announcement in the middle of this week. He said until the firm goes "into default" it will retain the licence, but there had been no contact as far as he knew with the Water Industry Commission for Scotland (WICS), the CMA or with Scottish Water, which is the wholesaler in the market.
"A customer of theirs that I have talked to is a multinational with sites across England, Wales and Scotland and they have asked me to assist them in this situation," he said.
Scottish Water said: "We are awaiting information and clarification from Aquavitae and we are in close contact with the Central Marketing Agency.
"We are aware they have new owners and the new owners are reviewing the strategic direction of the company. We have not been informed of their conclusions."
Eddie Spencer, a water analyst for energy consultant McKinnon & Clarke, said he had been told Aquavitae was no longer competing in Scotland and that data he had supplied would be returned.
He was also concerned that the Water Industry Commission was unable to provide clarification.
A spokeswoman for the regulator said there had been no confirmation from Aquavitae about its trading status.
Scotland on Sunday made several attempts to contact Aquavitae at its offices in Berkshire and Glasgow but calls were not returned.
As the confusion over Aquavitae emerged, McKinnon & Clarke criticised the commission for doing a "poor job" of motivating business customers to look at alternative suppliers.
Managing director Simon Northrop said: "The opening up of the market – the first in the UK – has not resulted in a deluge of customers switching supplier. In fact, industry members believe only a handful have made the move away from Scottish Water."
The commission's spokeswoman rejected the claims, saying it was early days and that one of the new firms, Osprey, a division of Anglian Water, would have a "huge launch" in June. Ondeo is just starting to test its systems, she said.
Edgar Speak would only say his firm was talking to potential customers but he would not say how many. He expects 20% of customers to switch supplier in the first year.
The full article contains 506 words and appears in Scotland On Sunday newspaper.
