The contract to provide water and wastewater services to more than 100 public sector organisations was originally due to be awarded in February this year, but the latest delay sees this potentially being put back until the end of the year.
EY water sector lead Mark Turner told Utility Week this latest postponement of the contract award adds further uncertainty to the situation for the potential suppliers.
“It does need to be sorted out because organisations do try to make long term decisions, but if you don’t know what is happening with a contract, you can’t make those decisions which can’t be a good thing,” he said.
A spokesperson from Anglian Water Business admitted things remain unclear, but added: “We are certain the fair and legal system for procurement will prevail and we are poised at our Edinburgh office to start work and bring to the Scottish public sector organisations the benefits and savings our bid represents.”
Business Stream chief executive Jo Dow said: “The contract extension until 31 December is very welcome. We look forward to building on the benefits we’ve already delivered public sector organisations across Scotland to help them meet their challenging financial targets.”
Anglian Water Business was set to win the contract earlier in the year after tabling what is believed to have been the most compettiive bid, but the Scottish government was urged to rethink the award following political pressure.
The Scottish Green Party said it was “appalled” the contract could go to a privately owned English company, rather than to Business Stream which is a subsidiary of state-owned Scottish Water.
A spokesperson from the Scottish government said: “The standstill period has been extended to give bidders time to consider some additional feedback on their submissions.
“It is reasonable to grant bidders extra time to consider this additional feedback. All bidders will be given at least seven days’ notice before the standstill period ends.
“The current contract was due to expire so it was prudent to extend the contract until 31 December 2015. This further contract extension period does not reflect any decision as to the length of the stand still period and is intended simply to ensure that public bodies continue to receive water and wastewater services.”
In August last year, when the tender for the contract was launched, Nicola Sturgeon, the then Scottish minister for infrastructure and cities, said the Scottish government was “determined to ensure that Scottish Water continues to be a public success story”.