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Tuesday, 24 January 2017 09:08

Retail market: brewer applies for self-supply water and sewerage licence

Greene King Brewing and Retailing Ltd has applied for a Water Supply Licence and Sewerage Licence with a self-supply authorisation.

If Greene King is granted a self-supply licence which will enable it to provide retail services to itself and associated organisations, Ofwat  is proposing to modify the standard licence conditions that will apply to Greene King.

Greene King says that a self-supply licence will enable it to build on efficiency works already undertaken, whilst driving cost and consumption control in the next phase of its water management strategy. In addition, it hopes that being an active participant in the market will drive further innovation and provide a direct customer voice in MOSL discussions.

The company believes that having a self-supply licence will give it a chance to take more control over its own water use, deal directly with the suppliers and build on its water strategy programme.

In order to facilitate the application, Greene King has entered a partnership agreement with Waterscan to take on the role and responsibilities for the retail functions including:

  • meter reading
  • central market operating system transactions
  • wholesaler management
  • paying water and sewerage charges through the settlement process
  •  and finding further water efficiency savings.

The partnership will take the form of a contractual agreement between the parties.

Greene King has 1757 locations in England and currently receives the majority of its bills in paper format. The pub retailer and brewer said self- supply will enable significant savings in the administration of the accounts.

As a self-supply licensee, Greene King will:

1. pay wholesale prices – the price that retailers pay to the water companies;

2. not pay retail margin added by suppliers in the open water market;

3. become a market participant including membership of MOSL with voting rights and the ability to directly influence the market; and

4. be able to supply water services to multiple sites for its business

Deadline to make representations or objections with respect to the application 21 February 2017.

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