NEW ENTRANTS
Presented by:
PAUL HORTON – CHIEF EXECUTIVE
Future Water Association
Conference sponsored by
Water supply licences (WSL)
Companies with water supply licences can supply water to large non‐domestic customers using the public water networks operated by water undertakers. There are two types of licence as set out below:
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retail supply licence: this allows the licensee to purchase a wholesale supply from an appointed water company’s supply system and supply the premises of its customers.
combined supply licence: this allows the licensee to introduce water into a supply system and supply the premises of its customers.
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Companies with Water supply licences (WSL):
Avon Valley Water Ltd
Kelda Water Services (Retail) Limited
Peel Water Ltd
Source for Business
Severn Trent Select Ltd
United Utilities Water Sales Ltd
Anglian Water Business (National) Limited NWG Business Limited
Scottish Water Business Stream Ltd
Sutton & East Surrey Water Services Ltd
Thames Water Commercial Services Ltd
Water 2 Business Ltd
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Water supply and/or sewerage licences (WSSL):
From the date the new retail market opens in April 2017), holders of new water supply and/or sewerage licences (WSSL) will be able to provide supplies of water and sewerage services to eligible non‐household premises. There are two types of licence – water supply licences and sewerage licences, each of which can have one or more different authorisations.
Water supply licences can currently have:
•an (English) retail authorisation: this allows the licensee to supply water to non‐household premises using the public water networks operated by water undertakers whose areas are wholly or mainly in England.
•a (Welsh) restricted retail authorisation: this allows the licensee to supply water to large non‐household premises (consuming at least 50 megalitres of water a year) using the public water networks operated by water undertakers whose areas are wholly or mainly in Wales.
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Water supply and/or sewerage licences (WSSL):
Sewerage licences can currently have:
•an (English) retail authorisation: this allows the licensee to provide sewerage services to non‐household premises using the public wastewater networks operated by sewerage undertakers whose areas are wholly or mainly in England.
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COMPANIES HOLDING A WSSL:
Anglian Water Business (National) Limited
Clear Business Water Limited
Kelda Retail Limited
Pennon Water Services Limited
Severn Trent Select LTD (t/a Water Plus with UU)
Sutton and East Surrey Water Services Limited
UU Water Sales Limited (t/a Water Plus with STW)
Castle Water Limited
Cobalt Water Limited
NWG Business Limited
Scottish Water Business Stream Limited
SSWB Limited
Thames Water Commercial Services Limited
Water 2 Business Limited (j.v. Wessex & Bristol)
N.B: All Companies including existing licence holders were required to apply and the companies above were granted their licences in September & October 2016
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POTENTIAL BUSINESS MODELS:
• Low Cost Option • Differentiation Option
• Focussed Option – specific target customers
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THE POTENTIAL BENEFITS OF COMPETITION
Based upon the achievements of the major supplier in Scotland where the market opened in 2008 the benefits could be significant, in the first 5 years they delivered:
• More than £35 million in Water efficiency savings
• 26% increase in customer satisfaction
• Made available more than £30m worth of discounts
• Saved public sector customers more than £20m in three years
• Helped customers save 16 billion litres of water and more than 28,000 tonnes of CO2.
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A VIEW TOWARDS 2020 (Or maybe 2022)
The Government currently considering move to Domestic competition
Final OFWAT review of cost benefits delivered to Government
Benefits could be worth £2.9Bn over 30 years (£8 per customer per year) Customer survey suggests that they expect 25% saving!!
BUT IS IT JUST ABOUT THE MONEY?
OTHER BENEFITS SHOULD INCLUDE:
• INNOVATION
• IMPROVED CUSTOMER SERVICE
• BUNDLED OFFERINGS – ENERGY, TELECOMS, BROADBAND & WATER
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