Water retailers scoop £960m government contracts

Nine water retailers win places on the UK's biggest public sector water framework

Nine water retailers are set to share in a £960 million government bonanza, as the Crown Commercial Service (CCS) awards places on the water services framework for the public sector.

The companies which will be able to provide water supply and sewerage services to the public estate are Affinity Water, Anglian Water, Business Stream, Castle Water, Pennon Water, Three Sixty, Water Plus, and ADSM.

Successful providers to gain a place on the ‘one stop shop’ – to provide both water and sewerage and water ancillary services – are Affinity Water, Anglian Water, Business Stream, Castle Water, Pennon Water, Northumbrian Water, Three Sixty, Water Plus, and ADSM.

Contracts to provide just water ancillary services – including the management, conservation, reduction and data management of water consumption – will be awarded imminently.

The multi-supplier framework will be live and available to public sector organisations for the opening of the market in April. It will run for three years with the option to extend by a further 12 months.

The CCS issued tender documents for licensees in February, when it valued the public sector water retail market at £960 million.

The procurement agency is collaborating with a number of bodies, including The Energy Consortium and the Ministry of Defence, to bring to market the largest public sector water framework agreement in the UK.

Minister for the Cabinet Office Ben Gummer said: “This is the first agreement of its kind in the UK. The opening up of the water market will create a unique opportunity for efficiency and collaboration. Ensuring that our public finances are on a sustainable path is vital to securing a strong and stable economy that works for everyone.

“The government is committed to delivering value for money for taxpayers and the Cabinet Office will continue to drive savings right across departments as set out in the Spending Review in 2015.”

ADSM said it was “delighted” to be appointed by the government as suppliers to provide water management solutions to the public sector. Chief executive Patrick McCart said: “The additional development of the retail arm of our business will drive added value, innovation and real cash savings to our new clients.

“We aim to democratise building owners and occupants to view and engage with water use in buildings in a more effective way. It is a very exciting time for our potential new clients and for us. We aim to place Britain at the forefront of global water supply and conservation, which is firmly at the top of our agenda.”

The government hopes the agreement will help the public sector to save more than £20 million over four years. Central government, schools, colleges, universities, museums, housing associations, councils, the emergency services and NHS Trusts are among those eligible to access the framework.