Waterscan gets go-ahead for water retail market

Waterscan has been given the go-ahead to provide water retail services in the business market from April.

The water management consultancy was granted a water supply and sewerage licence by Ofwat today.

However, managing director Neil Pendle told Utility Week the company will be a managing agent for self-supply, and therefore obtaining retail customers is not its primary objective.

“We are making sure that systems are in place for our self-supply customers,” he said, the first of which, Greene King, applied for a licence on 23 January.

Waterscan’s application took longer than some to be given approval. Pendle said: “We hoped to have got our licence in the first week of January, but there were a couple of things we needed to look at again. We’d always planned for that and we’re very happy with the process.”

Graham Mann, senior partner at H2O Building Services, had previously made a formal objection to Waterscan being granted a licence, saying it would jeopardise the consultancy’s independence.

Ofwat declined to comment on an individual application, though a spokesperson told Utility Week the application process for a water supply and sewerage licence typically takes about 60 days. They added that it “may exceed this timescale in some instances”.

Waterscan’s application being granted brings the total number of companies licensed to provide retail services in the market to 15. A further nine have applied.

First licences were granted at the beginning of October. Successful applicants were: Anglian Water Business; Castle Water; Clear Business Water; Kelda Retail – now part of Three Sixty – Northumbrian Water Business – now Wave – Severn Trent and United Utilities, on behalf of Water Plus; South Staffs Water Business; SES Business Water; and Water 2 Business – a joint billing venture between Wessex Water and Bristol Water.

Waterscan was the first non-water-supplier to request a licence to operate in the market in September last year. It said it will target multi-site clients in the retail, hospitality and leisure sectors.

The retail service will operate as a separate business unit, while using Waterscan’s existing water management software and expertise.

“Waterscan aims to position itself as the innovative and independent partner for strategic water management services to the commercial market,” the company said in its application. Its core service will be to provide “accurate client billing data to wholesalers, retailers and clients”.