The water regulator Ofwat has paved the way for suppliers to hike up water bills for businesses as the pandemic has left a hole in their finances due to bad debt.
Water companies across the market have seen bad debt which has reached more than 2% for the non-household revenue.
Suppliers should now be able to plan and deal with the bad debt, but only up to levels of 2%, Ofwat said.
Ofwat business retail market director Georgina Mills said, “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic retailer failure as the business retail market continues to feel the impacts of Covid-19.
“By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”
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