The water regulator weighs SME price cap changes after a consultation that has been launched.

Ofwat has said the new proposals will make SME price caps simpler by moving from the existing model of price caps varying on a regional basis to an England-wide national price cap.

This change is expected to lead to an increase in price caps in some regions of England, whilst in other regions price caps will decrease.

On average, across all regions in England, the changes that Ofwat proposes are predicted to lead to final bills for business customers on a dual (water and wastewater) metered tariff increasing by around 0.1%, before inflation.

Georgina Mills, Business Retail Market Director at Ofwat, said: “This is the first time we have done a thorough review of retail costs to serve smaller business customers.

“Competition is working less well for smaller business customers, so our proposals aim to protect these customers whilst supporting a sustainable market where efficient retailers can earn a fair return.”