Whitbread Group PLC has applied for a Water Supply Licence and Sewerage Licence with a self-supply authorisation and proposal by Ofwat to modify the standard licence conditions that will apply to Whitbread, if it is granted a self- supply licence.
Whitbread Group PLC is a hotel, restaurant and coffee shop operator – its brands include Costa, Premier Inn, Brewers Fayre, Beefeater Grill and Table Table - the company has 1081 supplies in England.
Whitbread says that a self-supply licence will enable it to build on efficiency works already undertaken, whilst driving cost and consumption control in the next phase of its water management strategy. In addition, it hopes that being an active participant in the market will drive further innovation and provide a direct customer voice in MOSL discussions.
The company believes that having a self-supply licence will give it a chance to take more control over its own water use, deal directly with the suppliers and build on its water strategy programme.
In order to facilitate the application, Greene King has entered a partnership agreement with Waterscan to take on the role and responsibilities for the retail functions including meter reading, central market operating system transactions, wholesaler management, paying water and sewerage charges through the settlement process, and finding further water efficiency savings. The partnership will take the form of a contractual agreement between the parties.
In summary, as a self-supply licensee, Whitbread will:
- pay wholesale prices – the price that retailers pay to the water companies;
- not pay 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; and
- be able to supply water services to multiple sites for its business.
Deadline to submit representations or objections to Ofwat about the application is 28 April 2017.


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