Retail market for non-domestic water

Infrastructure Minister Stewart Stevenson today welcomed the opening of the retail market for non-domestic water and sewerage customers, stating that it would be of major benefit to Scottish businesses.

Mr Stevenson said:

"The opening of the retail market for non-domestic water and sewerage customers is an exciting development for Scotland. For the first time all business and public bodies, such as schools and hospitals and Local Authorities, will have a choice of who supplies them with their water and sewerage services.

This is the first time such market competition has been introduced anywhere in the world.

"The role for the water industry is to provide high quality and efficient water services. Retail competition for non-domestic customers should lead to keener prices, innovation and improved customer service, thereby giving Scottish businesses a competitive edge, supporting our overall purpose of increasing sustainable economic growth."

The retail market is open to all non-domestic customers - approximately 130,000 organisations.

All suppliers require to have a license from the Water Industry Commission for Scotland. Four companies have acquired a license - Satec, Aquavitae and Business Stream (Scottish Water's arms length retail business) and Osprey Water Services, part of the Anglian Water Group.

A license condition is that retailers must offer default tariffs and levels of service to all customers - this ensures that the quality of service is maintained and that no customer can lose out as a result of the introduction of competition.