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Credit To Self-Supply Retailers

The Self-Supply Users Forum convened for its first session of 2021 on 17th March.

Well attended by water self-supply licence holders and other organisations keen to understand how self-supply might benefit their operations, the Forum also welcomed speakers from industry regulator Ofwat and market operator MOSL as well as input from members of the Self-Supply community, Whitbread.

The meeting heard that self-supply now accounts for a market share of 0.6% with over 16,400 supply points. Self-supply continues to lead market performance and water efficiency with a 97.5% market performance score and consumption reductions of 6-7%, compared to rest of the market at 0.5%. The self-supply sector is also successful in tackling long unread meters, with just 3.5% in this category contrasted with a market average of over 30%.

Of particular note, meeting chair Neil Pendle reported ‘fantastic progress’ on credit terms for self-supply retailers. Thirteen of the UK’s fifteen water wholesalers now offer a variety of credit options, many acknowledging the differences in risk posed by different retailers.


Read the full report here.


Neil commented: “I’m really pleased to say that there’s been a huge amount of activity amongst wholesalers who simply didn’t have sufficient credit options for large water customers in place. The introduction of a wide range of alternative arrangements signals a marked shift towards more effective and efficient market solutions with less administrative frictions and financial externalities.”
He went on to explain that one of Waterscan’s recent priorities has been to repatriate cash held by wholesalers as security deposits for several self-supply retailers and this has now been dramatically reduced, a phenomenal success for self-supply retailers.

Attendees also heard from both market regulator Ofwat and market operator MOSL about their priorities for the year ahead. These include supporting non-household customers as they come out of national lockdown and consulting on how to manage the anticipated bad debt, removing barriers to innovation and water efficiency, and a major data cleanse initiative aimed at resolving operational challenges to the market.

Following an interesting presentation at the last Forum, Yvonne Mason, Environment Manager and Ross Greenhalgh, Energy Manager at Whitbread, along with Waterscan’s Rebecca Gale, were invited to speak more about the corporation’s impressive water stewardship work through risk mapping and disclosure on water.

You can read the full report here, or find the key takeaways below.

Self

The full report from this, and previous meetings, can be found here.