Utility Week

UTILITY WEEK | 31ST AUGUST - 6TH SEPTEMBER 2018 | 13 Policy & Regulation Analysis S elf-supply is a term oen misunder- stood. It doesn't mean companies have to provide their own water. Instead, it means they can cut out the mid- dleman retailer and interact directly with wholesalers. Since the water retail market opened in April 2017, a select few large business customers have chosen this route. All of these have entered into partnership agreements with consultancy Waterscan. The advantages of self-supply are plentiful, although it must be noted that the option is not for everyone. Companies opting for this path pay wholesale prices, and they don't have to pay the retail margin added by suppliers in the open water market. They also become a market participant, which includes membership of the market operator, MOSL, and with it voting rights, giving them the ability to directly influence the market. Greene King Greene King is a brewer and pub retailer. It has 1,757 sites in England and currently receives most of its bills in paper format. It was the first business to apply for a self- supply licence, in January 2017, before the market even opened, and was granted this licence in March that year. The company says the licence will enable it to "build on efficiency works already undertaken, while driving cost and consumption control in the next phase of its water management strategy". Whitbread Whitbread is the UK's largest hotel, restaurant and coffee shop operator. It owns chains such as Costa Coffee, Premier Inn and Beefeater. The group has 1,081 supply points in England, and was granted its licence in August 2017. It says it hopes being an active participant in the market will "drive further innovation" and provide a direct customer voice in discussions with the market operator. Marston's Brewery and pub retailer Marston's, which operates more than 1,600 pubs, bars and lodges, received its licence in November 2017. Marston's head of group facilities Andy Kershaw said at the time its licence was granted: "This is a great opportunity for Marston's, enabling us to drive efficiency and cost while working towards reducing consumption through our managed sites and breweries. It also gives us the platform to trial innovation and become an active partner in the market." Coca Cola European Partners Coca Cola European Partners is a manufacturer of so drinks and producer of mineral waters and other bottled waters. Among the products made by the firm in the UK are Coca Cola, Fanta, Sprite, Schweppes and Capri Sun. The company received its licence in March 2018 and, in its application, said having a self-supply licence would give it a chance to "take more control" over its own water use, as well as allowing it to deal directly with suppliers and "build on the success" of its water programme. Blackpool Council Blackpool Council was granted its licence in June 2018. The licence allows it to manage its own retail services for more than 120 sites across the borough. The move is estimated to save up to £194,000 over three years. In the first year, anticipated savings are expected to be in the region of £50,000, with the potential for further savings through additional cost and consumption efficiency projects. Stonegate Stonegate operates more than 690 pubs and bars in the UK, within a wide variety of formats, from community and high-street pubs to country inns and late-night venues. The company applied to self-supply in June 2018. At the time of going to press it had not yet received its licence. Heineken Beer and cider company Heineken – the name behind brands such as Strongbow, Bulmers, Foster's and Kronenbourg 1664 – has breweries, cider plants and offices in Edinburgh, Tadcaster, Manchester, London, Hereford and Ledbury. The company says water is integral to its business, in both growing hops, barley and apples and the production of beer. Heineken applied for its licence in July 2018, and is waiting for this to be granted. Berendsen Laundry firm Berendsen is the most recent company to have applied for a licence, in July 2018, for all 32 of its sites. The licence has not yet been granted. The company said in its application that it believes having a self-supply licence would enable it to take more control over its own water use, deal directly with the suppliers and build on the success of its water programme. Meet the self-suppliers Greene King was the first company to make the plunge into the world of self-supply, now momentum is gathering. Utility Week looks at other firms providing their own water retail services. NUMBER OF SUPPLY POINTS BY REGIONAL AND SELF-SUPPLY RETAILER To keep abreast of developments in the water retail market every fortnight, subscribe to Water.Retail, from the publishers of Utility Week. To find out more, visit: http:// utility-week.co.uk/water-retail/ Yorkshire Water Greene King Marstons Whitbread Independent Water Networks SSE Water Veolia Water Projects Dwr Cymru Welsh Water Albion Water Leep Water Networks Icosa Water Dee Valley Water Albion Eco 3,083 1,711 1,409 454 155 258 112 49 50 29 14 1 0 50,000 100,000 150,000 200,000 250,000 300,000 Water supply points Sewerage supply points 248,941 Total number of supply points: 256,266, as of July 2018

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