Crown Commercial Service

First UK water aggregation achieves 10% price reduction on market average

Since 1 April 2017, public sector business customers have been able to choose their water provider for retail services. In collaboration with public buying organisations; YPO, Eastern Shires Purchasing Organisation (ESPO), North East Procurement Organisation (NEPO), West Mercia Energy and The Energy Consortium (TEC), we put in place the first public sector water framework agreement to enable customers to access the market.

 

The requirement

Recognising customers pay anything between 6-13% for retail water services, we wanted to help customers gain better value for money by accessing lower and transparent billing and improved servicing.  

The solution

We ran the UK’s first aggregated further competition for water and wastewater services for public sector customers using our framework (RM3790), which enabled customers to switch supply as early as 1 January 2018. We leveraged the combined volumes to attract supplier competition and ran an EU procurement compliant eAuction, with a sealed bid process. The eAuction offered both monthly and quarterly billing options and we evaluated supplier responses against rigorous value and quality criteria, awarding to the most economically advantageous offer.  

The results

The further competition, which took place in October 2017, brought together the water and wastewater services of 122 public sector customers, amounting to £40 million of spend.

The recommended supplier for the monthly billing and quarterly billing options was Castlewater Ltd and Business Stream Ltd, respectively.  By 31 December 2017, 34 customers across central government, councils, NHS trusts, schools and colleges, had signed call-off forms.  These customers have achieved an average of 4% reduction against the retail market average, with some customers achieving up to 10% reduction.

In financial terms, this equates to between £100 and £10,000 saving per year depending on the size of the estate.   

All customers who participated in this further competition and who submit call-off forms by 14 February will benefit from these great rates and other framework benefits for the next 2 years and will have the option to extend by one year.  All public sector customers are still able to access the framework via further competition.

A quick reminder on some of the benefits:

  • financial savings – on average customers have achieved a 4% reduction against the average retail margin from this competition (with some customers achieving up to 10% reduction.)
  • personalised service – dedicated account manager
  • improved support and query management- dedicated  customer service team
  • choice of billing format – consolidated billing, electronic billing, paper billing,
  • governance – quality service provision with suppliers monitored against framework KPIs, regular reporting and meetings with CCS
  • Time and resource  savings – from simplified procurement process and supplier rationalisation.

 

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If you want to find out more about how we can help you save money on your water bills, why not get in touch or sign up to our newsletter? Quote 'Water Aggregation - RM3790'

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