Hotel chain set for £75,000 savings with water supplier switch
Luxury hotel group Malmaison and Hotel du Vin has signed a ground-breaking contract with Anglian Water Business (AWB) to supply water to all of its UK properties, ahead of next year's water retail market reform.
AWB will provide water to all 33 of Malmaison and Hotel du Vin’s hotels across the UK as part of the deal, which is expected to result in more than £75,000 of savings for the hospitality company when the market reform is implemented in April 2017.
The deal, which was brokered by utilities consultant Inprova Energy, represents the first single contract water supply agreement to be signed across multiple UK sites ahead of next year’s changes, which will allow businesses across England to choose their water and waste water services provider – as they have been able to in Scotland since 2008.
Finance Director for Malmaison and Hotel du Vin Gary Hall said: “The utilities market in the UK, and water services in particular, has historically proven to be a difficult sector in which to gain economies of scale through multi-site contracts. Our partnership with Anglian Water Business and Inprova Energy allows us to benefit not only from an improved financial position, but streamlines the administrative burden needed to manage the disparate accounts.”
Inprova Energy initially recommended AWB to Malmaison and Hotel du Vin after a six-way competitive tender process. The hotel group expects to see significant financial savings from improved water efficiency measures, lower tariffs and consolidated billing as part of this supplier switch.
Business Account team manager for AWB Peter Gaskell said: “We were able to identify clear savings and increased efficiencies for Malmaison and Hotel du Vin sites nationally. Our Active Water Management service will ensure substantial savings throughout the chain, while our consolidated billing and outstanding customer service will mean improved efficiencies, added value and a simplified process.”
Similar supplier deals have been struck between water companies and businesses in preparation for next year’s market reform in England. Last month, for example, footwear retailer Schuh estimated £62,000 in savings after committing to switch its supplier to Thames Water.
The introduction of a competitive water market in Scotland eight years ago has led to huge water bill reductions for businesses across the country – national figures for 2008-2014 revealed £51.7m savings through price discounts, on top of a £43m saving from water-efficiency measures over the six-year period.