Scottish water competition is good for business
Competition is coming to the Scottish water and sewerage industry in what is probably the most significant change ever to affect the sector in Scotland. The new framework for the 130,000 business users in Scotland has already begun its countdown to the launch date on April 1.
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, chief executive of WICS 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.
“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.
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.
Andrew Bainbridge, chairman of the MEUC said: “Does your business have the energy and knowledge to save on its water bills? Is the management motivated to care? Do you take the environment seriously enough to know how to reduce your water usage?
“There is no doubt about it that water is going to be one of the most valuable commodities on the planet over the course of this century. The World Economic Forum’s figures show it takes up to 2.5 litres of water to produce a single litre of petrol; 2,700 litres to produce one T-shirt; and 16,000 litres for a single kilo of beef.
“You, as a business, should be minded to take sensible steps to reduce your waste and water consumption. We are delighted to see so many delegates attended this major event to showcase the benefits they can receive from the new competition framework and to be seriously considering the benefits it can bring to their businesses.”
In related news, one of the largest water companies in England has applied to the Water Industry Commission for Scotland (WICS) to become the fourth licensed water and sewerage operator when the new competition framework takes effect on April 1.
Osprey Water Services, part of the Anglian Water Group, will join Business Stream, Aquavitae, and Satec, offering its own range of retail pricing and services to the 130,000 business customers in Scotland. WICS expects to give its initial view on the application within the next week.
The new competition framework in Scotland is a world first in the provision of water and sewerage services.
Alan Sutherland, WICS’ chief executive said: “We are delighted that a company with the backing of a major utility player such as the Anglian Water Group, has submitted an application.
“Customers are now likely to benefit from real choice. They will be able to choose from a range of suppliers, both major industry players and smaller, more specialist companies. No longer will Scotland operate a ‘one size fits all’ approach to the supply of water and sewerage provision.
“With only six weeks to go before the change takes effect, the new framework is already showing signs of benefiting Scottish customers.”
