United Utilities Scotland said the deal with the largest commercial customer in Scotland will save the retailer more than £800,000 a year, achieved by working in partnership with the retailer and “drawing on our experience and scale”.
United Utilities sales director Tony McHardy said: “Water is an important part of Tesco’s in-store operations.
“By working in partnership with Tesco and drawing on our experience and scale, we can deliver a real cost saving as well as excellent service.
Tescos has 281 stores and distribution centres in Scotland. United Utilities said the contract “sends a strong message to the market about the quality of service we can provide.”
A spokesperson for Tesco in Scotland said: “This new relationship should make things better for our customers. In this case we can provide improved service and new efficiencies, supporting our objective of serving Scotland’s customers a little better every day.”
United Utilities is the largest water supplier in England and the second largest supplier of water and waste water services in Scotland, serving more than 3,000 sites.
The company also supplies energy company SSE, shoe repair chain Timpson, and the Scotmid chain of supermarkets.