Competitive Water Supplies to Businesses

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Competitive Water Supplies to Businesses

The Water Industry Commission Industry for Scotland (WICS) has signalled the start of the countdown to competition in Scottish water supply.

From 1 April 2008 all businesses in Scotland will be able to buy their water competitively from a number of licensed suppliers, and are no longer obliged to use Scottish Water. The new model is a first in the world and could form the template for a competitive water industry in other countries around the globe.

Scottish business customers can now choose between three suppliers with more expected to come on board over the next few months. Alan Sutherland, chief executive of WICS commented: “The introduction of a competitive water market is an exciting prospect for Scottish businesses.”

The new framework for the 130,000 business users in Scotland has already begun its countdown to the launch date on April 1.

Starting April

More than 150 delegates heard the reasons for competition at two events in February – one in Glasgow and the other in London – representing some of the largest business groups in Scotland and the UK.Hosted jointly by the Major Energy Users’ Council (MEUC) and the Water Industry Commission for Scotland (WICS), businesses were told that choice was good for users as it should produce lower prices and improved services.

Alan Sutherland, said: “From April 1, there will no longer be a ‘one size fits all’ solution to water supply. Competition in the Scottish water industry will help ensure that customers see further significant improvements in value for money.

Savings

“Now, all organisations in Scotland, from the smallest newsagent in the Western Isles to the largest industrial sites; from small council offices to leisure centres and hospitals; will be able to choose who supplies their water and sewerage services. This is a further small step in helping improve the competitiveness of businesses operating in Scotland.”

Already the wholesaler Scottish Water has reduced its overheads by £10m in the run-up to the new competitive framework – savings that are being passed on to consumers.

Scottish Water’s retail arm, Business Stream, has been joined by two other companies, Aquavitae and Satec, to compete for the 130,000 business users in Scotland, offering a range of options to win their business.

Negotiate

Business can switch suppliers easily by making one phone call. All the work will be handled by the new supplier in less than six working days.

Pricing will be a key factor, but customers will have the option to negotiate with their suppliers over the range of services they receive. These can include itemised and single billing for multiple sites, Smart metering, water treatments, environmental measures and 24/7 call-outs as a range of possible options.

For more information on the new competition framework for the water sector, please go to www.watercommission.co.uk .