Farmers are being urged to tap into the business opportunities flowing from a shake-up of the water market.

The Open Water market launches on April 1, meaning consumers can choose their own water and wastewater services supplier, rather than being restricted to a regional supplier – much like they can with telecoms, electricity and gas.

Currently, only those using more than 50m litres of water per year are entitled to select their water provider.

The government estimates another 1.2m more customers will become eligible to choose after the changes, which are designed to bring more competition to the market and better value for money.

Paul Hammett, the NFU's national water resources specialist based in Newmarket, said 'non-household' customers such as farmers and growers will buy their mains and waste water services from newly-created retailers, who in turn have bought their supplies from a wholesaler.

He said there is the potential for these new providers to offer value-added services such as leak detection, smart meters, water recycling, pipe insurance, improved billing or compliance auditing for installations such as livestock watering troughs.

Anna Brookman, senior surveyor in the Norwich office of property agency Strutt and Parker, said the introduction of a competitive water market may offer farmers an opportunity to reduce their water costs and benefit from improved levels of service.

'Farmers will be free to choose their retailer by looking at who has the best deal for them,' she said. 'However, a sensible first step before you contact anyone for a quote is to carry out a water audit, so you really understand your usage and how much it is currently costing you.

'Farmers should also think about what they want from their provider. If the priority is to cut costs, then you might be happy with someone who offers a very transactional service.

'However, if you want a supplier that will be helpful, easy to contact and can help you improve water efficiency, then you need to ask questions to see if they meet your needs.'

Miss Brookman said the opening up of the water market will particularly benefit businesses with multiple sites – as they will be able to choose one supplier for all sites and receive a single bill.

'This is a welcome change, however, farmers and landowners will need to be proactive in seeking the best supplier in order to benefit their bottom line. Farm businesses are frequently significant consumers of water and despite rainwater harvesting and abstraction rights, a significant proportion continues to be drawn from mains supplies.'