Blackpool council seeks £194,000 savings in water switch

Blackpool Council is looking to save £194,000 over three years by taking control over its own water supply.
Blakcpool Council is bidding to take over is water supplyBlakcpool Council is bidding to take over is water supply
Blakcpool Council is bidding to take over is water supply

It is to become the first local authority in the country to take the step following in the footsteps of companies such as Coca Cola, Marstons and Whitbread in deregulation of the water industry.

If it gets the go-ahead from Ofwat for a water and sewerage licence, it means it will be able to buy water and wastewater services from United Utilities at wholesale prices saving money.

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It will then act as the “supplier” for its own offices and premises where it will read its own meters forits premises and will submit its readings to the water company. It will not act as water supplier to any private homes or businesses.

The council estimates the move will save up to £194,000 over three years, with around £50,000 in the first year alone and potential for further savings through efficiency projects.

Coun Fred Jackson, cabinet member responsible for the environment, said: “This is an exciting initiative and we are looking forward to the opportunities that a self-supply licence offers us in managing our water usage responsibly, efficiently and cost-effectively.

“We are the first public sector organisation to apply for this licence.

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“There are many benefits such as reducing administration costs and cutting out the margin that goes to others in the supply chain.

“We will pay the price that retailers pay to the water company which will deliver significant savings.

“The licence also gives us a voice as it offers certain rights such as voting rights which can help influence the future development of the water market and the water strategy of the wholesaler.”

The council has partnered with self-supply specialists, Waterscan. It will take on retail functions and ensure compliance with regulations.