Did you know businesses can supply their own water ?
The uptake of water self supply licences by businesses in England, buying water and wastewater services at wholesale prices may turn from a trickle to a flood.
So what is water self supply ?
A self supply licence enables any business using more than 50 million litres of water per year to buy their water and wastewater services direct at wholesale prices. Which is a protected price that water retail companies pay.
The water regulator OFWAT made sure the wholesale contract of a water self supply licence is on the same terms as all water retail companies.
Ensuring a level playing field of the Open Water Market.
Essentially, a business would effectively take on the role and responsibilities of the water retail function. For example, taking on billing, meter reading and debt management.
The main benefit of self supply is that the water self supplier pays the price that the water retail companies pay and are billed direct from the wholesaler water and sewerage supplier in their area/s. Saving the water retail margin or markup on the wholesale market rates.
Businesses would hold a water and sewerage licence (WSSL) granted by the water regulator OFWAT, businesses would pay around £5,000 allowing them to use the supply system of an appointed water or sewerage company.
So what are the benefits of going self supply?
As a self supply licensee you will : –
Not pay the water retail margin added by the water retail companies.
Pay wholesale prices for water and wastewater services, the same price as the water retailer companies pay.
Be able to supply water and wastewater services within your own business.
Acquire certain rights for example, membership of and voting rights in the running of the water market by the water market operator MOSL (Market Operator Services Ltd).
So which companies have taken the plunge and gone self supply ?
Companies such as British Telecom, Stonegate Pubs, Greene King, Heineken UK, Coco Cola, Elis Group, Kelloggs, Marston Brewery, Boots.
While there are huge financial benefits, water self supply is not for everyone. Caution is advised as businesses must take water consultants advise before committing to an application for a water self supply licence to ensure its the right fit for your business.
NB: Water self supply applications are not available in Scotland and Wales.