Hospitality company Whitbread Group has become the second business water customer to seek to supply its own water retail services in the newly-opened market.
The group has applied to Ofwat for a water supply and sewerage licence with a retail authorisation limited to self-supply, which it said would “enable it to build on efficiency works already undertaken, whilst driving cost and consumption control in the next phase of its water management strategy”.
In addition, the company said it hopes that being an active participant in the market will “drive further innovation” and provide a direct customer voice in MOSL discussions.
In order to facilitate this application, Whitbread has entered a partnership agreement with Waterscan to take on the role and responsibilities for the retail functions including meter reading, central market operating system transactions, wholesaler management, paying water and sewerage charges through the settlement process, and finding further water efficiency savings.
This partnership will take the form of a contractual agreement between the parties.
Whitbread has 1,081 supply points in England. As a self-supply licensee, the company will pay wholesale prices; not pay retail margin added by suppliers in the open water market; become a market participant including membership of MOSL with voting rights and the ability to directly influence the market; and be able to supply water services to multiple sites for its business.
In January, brewer Greene King became the first business water customer to apply for a self-supply licence, and entered into a similar partnership with Waterscan.
Soon after, in February, Earls Gate Water – a subsidiary of chemical company CalaChem – became the first non-household water customer in Scotland to apply for such a licence. The company partnered with Scottish retailer Everflow, which will take on the responsibilities for the retail functions for a much-reduced charge in comparison to regular retail services.
Market observers have suggested that more self-supply deals are“on the horizon” in both England and Scotland.