Press Release

Public sector to save around £20 million with new Business Stream water deal

Scotland’s public sector organisations are expected to save between £18.6m and £24.5m over the next three years after agreeing a water supply deal with leading non-domestic water supplier Business Stream.

Following a close competitive tender Business Stream was awarded the three-year contract to supply water services to Scotland’s entire public sector, which includes 220 public sector organisations across 17,000 sites.

Competition was introduced into Scotland’s non-household water market in April 2008, after the Scottish Government saw an opportunity to use deregulation to improve customer service, increase value for money and drive innovation.

The contract was awarded by Procurement Scotland, who led the Scotland-wide tender process held under EU rules, and is worth £220 million over the three-year deal.

It is the first time that a contract to supply water services to all of Scotland’s public sector has been put out to competitive tender. Previously only colleges and universities have gone out to tender. The deal also includes charities, the voluntary sector and NGOs (non-governmental organisations).

Business Stream, the biggest Scottish firm operating in the market, will provide bespoke services for each organisation under the Procurement Scotland umbrella, but via a group pricing structure, which will deliver immediate benefits to the contracting authorities concerned.

Scottish public sector organisations which have already been working with Business Stream to improve water and waste water efficiency are likely to be able to make even greater financial savings as a result of the contract.

The deal will also give the organisations access to Business Stream’s range of additional services, including emergency support, which helps customers locate leaks quickly or even before they happen.

They will additionally be able to take advantage of Business Stream’s pioneering “gainshare” approach. Under this model, Business Stream invests in new water efficiency infrastructure, allowing customers to benefit from the associated financial savings without the need for up-front capital expenditure. In return for its investment, Business Stream shares a proportion of the expenditure savings that are made.

Mark Powles, chief executive of Business Stream, said: “This is an important win for us and we’re delighted to have been appointed by Procurement Scotland following a competitive tender. This tender is further evidence that the competitive market in Scotland is delivering tangible benefits for businesses and public sector organisations across Scotland. The public sector has challenging efficiency targets and we’re pleased to be helping them achieve this goal.

“Since the competitive market was established Business Stream has delivered over £13 million of consumption savings (equivalent to 8,025 tonnes of CO2) for customers and over 40% of customers are taking advantage of discounts. We look forward to further market reforms in England so that businesses across all of Great Britain can benefit.

Business Stream will work with every organisation covered by the deal and review water and waste water practice, providing recommendations of how water efficiency can be improved.

Reducing water use helps businesses to minimise their carbon footprint. Last year Business Stream was named green business of the year at the Real business/CBI’s annual UK Growing Business award ceremony for its work in encouraging Scottish organisations to implement environmental and water efficiency programmes.

Mark Powles added: “We hope this deal will highlight the importance of proper water and waste water management, and the efficiencies which it can deliver. The public sector has a lot to gain from building on the water efficiency measures we have already helped introduce, and this is an opportunity to deliver long term, sustainable benefits.”

Case study – Edinburgh Leisure*
Edinburgh Leisure, operators of the prestigious Meadowbank Stadium and Royal Commonwealth Pool, among other venues, achieved water reduction worth £41,000 a year after Business Stream experts helped cut the organisation’s consumption and identified sources of wastage, including leaks. The installation of smart meters also helped Edinburgh Leisure to better understand its water use.

Alan Hughes, energy and sustainability manager, Edinburgh Leisure, said: “In less than a year from when we began Business Stream’s water management service to install smart meters, the benefits were obvious. I expect the total financial saving to the organisation over the year to be substantial – and of course the system will help us to control costs in the future.”

Even customers that have already received such advice can benefit. With changes in building use, or as infrastructure continues to age, new ways of saving water can always be found.

*Pictures of Edinburgh Leisure sites are available on request.

(ENDS)

Issued on behalf of Business Stream by The BIG Partnership
For more information, contact: Bryan Garvie, Charlene Sweeney or Charles Cameron on 0141 333 9585 or firstname.lastname@bigpartnership.co.uk

Please note: Business Stream is entirely separate from Scottish Water, which had no role in the bid for the public sector tender, nor has it any other part in Business Stream’s activities as per the terms of Business Stream’s license conditions. While Business Stream is an arm’s length company of Scottish Water, it is a legally separate entity under the Water Services (Scotland) Act 2005 and operates entirely separately from Scottish Water.

Notes to editors

Business Stream
A wholly-owned subsidiary of Scottish Water, Business Stream has been formed as an arms-length company with its own board and independent management team. Its goal is to provide a first class service for business customers and respond to the challenge of other established utility companies entering the new, competitive market which opened on 1 April 2008.

Under the Water Services etc. (Scotland) Act 2005, Scottish Water had to split its operation into wholesale (Scottish Water) and retail (Business Stream) units. Although ostensibly remaining a part of Scottish Water, Business Stream works completely independently of its parent company in order to ensure fair and transparent retail practice under the rules of the new competitive marketplace for business customers.

Public Bodies means The Scottish Ministers (including Agencies), Scottish Non-Departmental Public Bodies, offices in the Scottish Administration which are not ministerial offices, cross-border public authorities within the meaning of section 88(5) of the Scotland Act 1998, any public body established by or under the Scotland Act 1998 or any Act of the Scottish Parliament, any association of or formed by one or more of the above, bodies financed wholly or mainly by one or more of the above, bodies subject to management supervision by one or more of the above bodies more than half of the board of directors of which, or, in the case of a group of individuals, more than half of these individuals, being appointed by one or more of the above, the Scottish Parliamentary Corporate Body, the Scotland Office, Special Health Boards, the Forestry Commission, Scottish Futures Trust, the Seafish Industry Authority, the Student Loans Company Ltd and the Northern Lighthouse Board.