Brewer Marston's to supply its own water

Marston's brews Banks's and other beers at its headquarters in Chapel Ash, Wolverhampton, while running another five breweries as well as more than 1,600 pubs, bars and lodges.

Under the new self-supply licence from water watchdog Ofwat it will now supply its own water and wastewater services.

It is only the third country to secure a self-supply licence since the UK's new open water market launched in April. This allows eligible companies and other organisations to self-supply and manage their own water retail services, providing an alternative to using a separate retailer and the additional costs that might entail.

The other licences have gone to rival beer and pubs group Greene King and to Whitbread, which runs the Costa coffee shops and Premier Inn hotel chain.

Andy Kershaw, head of group facilities for Marston’s, said: “This is a great opportunity for Marston’s, enabling us to drive efficiency and cost whilst working towards reducing consumption through our managed sites and breweries. It also gives us the platform to trial innovation and become an active partner in the market.”

Emma Kelso, Ofwat’s senior director for customers and casework, added: “Since the business retail water market opened in April, we have already seen many businesses across England taking advantage of it by shopping around for a better deal or renegotiating contracts with their existing supplier.

"Marston’s plc are a large, multi-site business, so opting to become a self-supplier could offer them benefits, including having more control over the service they get and reducing administration costs.”

With the opening up of the water retail market, businesses, public bodies and charities are able to ‘shop around’ and choose the best retailer for them, rather than having to use their local water supplier.

As well as being able to choose a different retailer, eligible businesses and organisations can also apply for a self-supply licence. This means they provide their own retail services, such as meter readings, to their own premises and those of persons associated with them. For some, this offers significant cost savings and flexibility.

They then get their water from a so-called water wholesaler, the regional water companies which provide wholesale services. maintain the water pipe networks, manage the physical supply of water to businesses and treat waste water.