By Joanna Frost
5th Jun 2017
Historically non-household customers have received water supplies and sewerage services through a statutory, regionally based licensed water supply company. However, The Water Act 2014 established the framework to create a new market and Crown Commercial Service (CCS) in collaboration with YPO, The Energy Consortium, Eastern Shires Purchasing Organisation (ESPO), North East Procurement Organisation (NEPO), West Mercia Energy, and the Ministry of Defence has now brought to the market a framework agreement in the UK for water supply, waste water and ancillary services.
From 1st April 2017, onwards ‘eligible’ non-household customers are able to choose their supplier of water, wastewater and ancillary services. ‘Eligible’ customers are non-household premises that pay business rates. Your water company is responsible for ensuring that eligibility is assessed correctly, however, there are guidance documents and eligibility checkers available for you:
In addition to supply and sewerage services this framework provides access to a range of ancillary services, mainly focussed on supporting delivery of water efficiency measures to reduce consumption and improve resilience.
Savings can be achieved from competing your water supply and sewerage services through this framework. However, supply margins are very low in England, and its believed the main benefits from using the framework will be from enhanced customer service, billing and access to data. Please note that the wholesale element of your bill accounts for about 95% which cannot be competed. These costs remain regulated by Ofwat. The retail element of your bill which accounts for about 5% of your bill is the part open for competition.
The optimal savings for your organisation can be gained through implementing water efficiency measures. You can expect to see anything from 10 – 20% savings. Therefore, Lot 3 allows you to compete both the water supply services and gain access to water efficiency measures such as:
For more information on the framework agreement visit Crown Commercial Service.