How the Wholesale Water Market Is Slashing Business Water Costs
You are probably aware by now that the water market for businesses in England has become deregulated, following in the footsteps of Scotland which deregulated its own water market in 2008.
For business customers, this means more choice and the ability to switch water suppliers for better deals. What you may not be aware of is an even larger water scheme that could additionally lower your business water costs below what existing suppliers can provide.
It sounds almost too good to be true, but it’s a fact. You can go one level above your current water supply company and buy water at even lower costs.
Your business is eligible for more savings by purchasing water supply services direct from the wholesale water market, cutting out the margins of water retailers. In effect, you become your own water supplier. The scheme is open to all businesses, charities, and public sector organisations and can reduce your water and waste-water charges considerably.
The only two requirements are that your premises must be mainly used for business purposes, and supplied from a predominantly English-based water company.
How Does It Work?
The main thing you will need to self-supply water is a licence from the Water Services Regulation Authority, better known as Ofwat.
A self-supply licence allows you to buy water at a protected wholesale price. You will then receive water supply and waste-water removal services from the water company in your region at wholesale prices.
The licence allows you to provide water services to your own premises, including across multiple sites. It also allows you to provide water retail services yourself, or to contract to a third party. Essentially, it gives your company the same abilities and privileges as other national water supply companies.
Giving your business complete control over your water supply has benefits such as more efficient use of water to cut costs, reduced carbon emissions from cuts in water use, and room for more innovation and better use of technology.
Not Without Some Disadvantages
Although water self-supply can often provide outstanding savings on water costs for your business, it’s not for everyone. Perhaps the largest change from receiving water from a traditional supplier is that you will no longer receive any form of billing or customer service support. For this reason, it’s important to have experts with experience in the water industry assess whether a self-supply licence is right for your business, or if you’re better off to continue receiving your water services from an existing company.
Let the Experts Help Evaluate Your Situation
The water audit experts at H2O Building Services can assist in determining if going directly to the wholesale water market is a viable option for your business. They provide an initial free self-supply appraisal with no obligation to help identify if water self-supply is right for your business.
H2O’s total water management service also facilitates your self-supply licence application and offers ongoing water management support. Call or email today for independent and impartial advice on the best water supply solution for you.