Water sector regulator Ofwat has granted John Lewis PLC a Water Supply Licence and Sewerage Licence with a self-supply authorisation.
The John Lewis Partnership is the parent company of John Lewis and John Lewis and Partners, a department store chain with 51 sites, and Waitrose and Partners, a supermarket chain with 349 stores.
John Lewis, the applicant for the WSSL, is the UK’s largest employee owned business. In 2018, both John Lewis and Waitrose underwent a rebrand, becoming John Lewis & Partners and Waitrose & Partners.
Water efficiency is becoming a key focus in John Lewis’ business strategy to 2028 - it is aligning its targets against the UN’s Sustainable Development Goals and the UK’s 2050 emissions targets.
When the national retailer applied for the licences in August 2019, John Lewis described self-supply as a further innovation that would allow it to drive a change in process, influencing its water strategy and targets, as well as offering it a customer voice in the market. It would also give it the opportunity to take more control over water usage and data, deal directly with wholesalers and improve its water strategy.
The licences will enable John Lewis to provide retail services to sites of John Lewis and Partners and sites of Waitrose & Partners, as these qualify as associate companies.
John Lewis has entered into a partnership with Waterscan, with Waterscan taking on the role and responsibilities for the retail functions including meter reading, wholesaler management and finding further water efficiency savings.
Waterscan will also complete all transactions on the Central Market Operating System (CMOS) - the core IT system that underpins the role of the Market Operator of the non-household retail market (MOSL). Waterscan will act as the managing agent for John Lewis, providing technical support and services whilst John Lewis builds relationships with wholesalers.
As a self-supply licensee, John Lewis will now be able to:
- Pay wholesale prices – the price that retailers pay to the water companies
- Not pay a 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
- Be able to supply water services to all English sites of its associated companies
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