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6 | 29th August - 4th september 2014 | utILItY WeeK People & Opinion Customers are the heart of business The introduction of water competition in Scotland not only saved money but improved service. Chief executive's view Mark Powles, Business Stream W ith the first weekend of the Premier League season passing, eve- ryone has predictions for the year ahead. I'm predicting (or perhaps simply hoping) that my team, Aston Villa, will beat the drop again this season. Some might consider that a brave prediction, but back in 2010 a report on the Scottish non-domestic water market by Grant Thornton also appeared to make some brave claims about the savings that would be made by customers over a 15-year period. Among its predictions, the report said Scotland's businesses and public sector organisations would have £110 million cut from their water bills by 2021, with an overall benefit-to-cost ratio of 3:1. That's money which can be better used by companies to invest in core activities and by public sector institutions to fund much-needed services. The report came shortly aer the introduction of competition in Scotland, which was the first water market of its kind in the world. That, perhaps, makes it difficult to predict form. With no precedent, it can be a tall order to suggest what might happen in the years to come. Four years since the report, and about six since the creation of the Scottish non-domestic water market, our customers alone have saved more than £100 million. The total for the entire market will be for more than the £110 million figure predicted, in just above a third of the time expected. The market is deliv- ering tangible benefits to cus- tomers, way beyond what the policymakers and market opera- tors anticipated. However, Scotland has shown that a successful market is about more than pricing. Since the introduction of competition we've seen customer satisfac- tion increase, water consump- tion reduce, and more than 60 new services have been brought to the market. It's also created a market that includes a range of suppliers, from niche operators to multi-purpose retailers; all of which aim to fulfil different cus- tomer needs. The savings realised in Scot- land shows that competition works. That bodes well for the introduction of a competitive market in England. Our experi- ence hints at the potential for a liberalised market to deliver even more on cost reduction, water efficiency and innovation. But the key lesson is that they can only be realised if customers are placed at the heart of the market; they will be the real influencers (and deciders) of success. Survival of the fittest Improvement programme makes returns A Balfour Beatty Utility Solutions efficiency pro- gramme recently allowed the firm to cut its contract costs by 20 per cent while maintaining service levels. The firm was sup- ported by consultancy Boxwood, which advocated the use of lean manufacturing techniques originating in the Toyota Produc- tion System. The efficiency drive allowed BBUS to win two eight- year contracts worth £1.2 billion with National Grid. What utilities can learn from… SPORT Double Gold medal winning Paralympic equestrian champion Natasha Baker MBE says: "Perseverance and self-confidence are essential ingredients to success. As ath- letes we have to put ourselves out there and push for spon- sorship, horses and funding, to be able to be at the top of our sport. The ability to take things on the chin and deal with failure is key, to learn from mistakes and move on to be a bet- ter, stronger athlete." Baker will share more of her insight into personal and professional development at the Everywoman Women in Energy Academy on 9 September. Find out more at: www.utilityweek. co.uk/event