Food manufacturers could make ‘significant savings’ on water costs

Food manufacturers could be making “significant savings” on their water bills if they “shop around”, OFWAT, the economic regulator of the water sector has claimed.

In April 2017, the UK opened up a competitive water retail market for businesses.  This meant that 1.2m businesses, charities and public sector organisations in England were no longer restricted to buying water services from their regional monopoly.

According to OFWAT, thousands of businesses have already taken advantage of the new system. One benefit is that it allows multi-site businesses such as food manufacturers to choose from a number of suppliers or retailers, which can provide single billing for all sites and a range of other services to suit business needs, such as reducing water waste.

‘Shop around’

It allows them to shop around,” Emma Kelso, senior director, casework and customers told Food Manufacture. “There can be significant savings either in terms of how much water they use with their environmental footprint, the price they get and we know some retailers are offering cash-back deals.

“It is the same pipes, same water treatment works and the same water. The retailer buys those services from the wholesaler on behalf of the customers and packages it up with other elements.”

In addition, certain types of companies can also now apply to become a ‘self-supplier’, which means that they handle all their own billing. Early adopters of this option in the food and drink manufacturing sector include Coca-Cola European Partners Great Britain, Greene King, Marston’s PLC and Whitbread.

“Becoming a self-supplier is not an undertaking that you would take lightly,” said Kelso. “If you are going to be a self-supplier you are going to have to convince us and the Drinking Water Institute and the Environment Agency that you understand the obligations.”

The organisation is encouraging companies to look at their options by visiting www.open-water.org.uk/for-customers/find-a-retailer/