Currently businesses have to mandatorily pay the quoted prices given by the provider which covers their location for water and sewage services. This is soon to change as the English water industry will be deregulated in less than 12 months time.
“Who will this effect?”
Well, if you are in the hospitality or sports industries, everyone!
Water (much like Gas and Electricity) is the life blood of many businesses within the hospitality industry. Mainly used for drinking, cleaning and irrigation (Grounds, Gardens, Pitches, Race Courses and Tracks), traditionally commercial water and sewage services are measured in 3 different ways.
Mains Water (Inbound) – Delivery plus estimated capacity
Foul or Sewer Water (Outbound)
Surface Waste Water (Outbound) – Typically the drainage of waste water from car parks and commercial grounds
There are currently 23 water suppliers and sewage companies in England, regulated by OFWAT and the Drinking Water Inspectorate. From April 2017, Deregulation of the water industry will allow businesses to shop around and switch between providers, much like the energy industry. Businesses will be able to source competitive prices for their water and sewage services as well as benefit from better metering and more accurate billing. There are no expectations for new water and sewage service providers to join the water industry once deregulated, but there will be a growth in independent retailers and brokerages. You will start to receive calls from your current water and sewage suppliers around the end of the year in the hope to retain your business.
OFWAT has also stated that the SMART metering of water will be rolled out commercially. This means that water suppliers will also have to offer their commercial clients web portal access so that consumptions can be regularly checked and benchmarked.
“So what should I do?”
To get ready for the water industry deregulation, businesses should familiarise themselves with their annual water consumption and any areas within the business which could be charged for surface water. Pay particular interest to the amount of water used within rooms, commercial kitchens, laundry rooms and leisure facilities. If your water supply is part of the business charges to a landlord, find out what the landlord intends to do regarding the upcoming water industry deregulation and request individual billing through sub metering. Business should also see if there are areas within the business where water can be saved, in particular bathrooms and toilets and inform all staff of the upcoming changes.
Foul or Sewage Water is currently calculated to be between 80 to 95% of all inbound mains water, depending on were your business is located within England. Surface water is usually calculated by the surface area which requires drainage but this can be individually metered.
Hotel Energy are already assisting clients with their water requirements through monitoring and regulating services, as well as introducing new water generation, filtering, capture and well water delivery services. Contact us for commercial water supply advice and regular updates on the upcoming water industry deregulation.
For more information about Hotel Energy click here