Brewer and pub operator Marston’s PLC, which has over 1,000 managed pubs and five breweries in England, has applied for a self-supply Water Supply and Sewerage Licence (WSSL).
Ofwat has launched a new consultation on the application and proposal to modify the standard licence conditions that will apply to Marston’s should it be granted a WSSL.
Marston’s applied for a water supply licence and a sewerage licence, with a retail authorisation limited to self-supply, on 28 June 2017.
If granted, this would enable Marston’s to provide retail services to itself and associated persons. A WSSL limited to self-supply will only be granted to supply premises supplied or served using the water supply or sewerage system of an undertaker whose area is wholly or mainly in England.
The synopsis of the company’s business plan 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, Marston’s hopes that being an active participant in the market will drive further innovation and provide a direct customer voice in MOSL discussions.
The brewer 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, Marston’s 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. This partnership will take the form of a contractual agreement between the parties.
As a self-supply licensee, Marston’s will be able to:
- pay wholesale prices – the price that retailers pay to the water companies;
- not pay retail margin added by suppliers in the open water market;
- become a market participant including membership of MOSL with voting rights and the ability to directly influence the market; and
- be able to supply water services to multiple sites for its business.
Deadline to submit representations or objections about the application and Ofwat’s proposal to modify the standard licence conditions is 4th August 2017. Click here to download the consultation document.
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