URL: https://sandwell.moderngov.co.uk/ieDecisionDetails.aspx?ID=1159

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Use of ESPO water framework with WAVE to allow for consolidated billing

Content: Approval was sought to use the Eastern Shires Purchasing Organisation (ESPO) water framework to appoint Anglian Water Business (National) Ltd (T/A Wave) to provide the billing and other ancillary services within the framework for four years commencing from January 2026. This would improve the Council’s management of water, sewerage and drainage leading to benefits such as reduced costs, improved officer efficiency and access to additional related services.   Reason for Decision The cost of water and wastewater for the corporate estate (excluding schools and leisure centres) was estimated at £700 000/yr. Whilst the costs for fresh water and wastewater were fixed and set by OFWAT, there were opportunities to reduce management and administration costs by changing supplier.   Use of the ESPO framework would provide an estimated 5% or £35,000/yr saving across the corporate state, based upon a sample of corporate buildings estimated spend for 2025/26.   Use of the ESPO Framework would allow the Authority to benefit from reduced prices and increased oversight by being part of a larger purchasing group with other Local Authorities. Central management of invoices would mean the Council would be appointed a dedicated account manager, leading to improved response times and accountability from providers.   Invoices for water were currently paid by individual sites, leading to uncertainty over the cost, usage and management of water as a utility. Sites would often receive separate invoices for supply and waste leading to additional uncertainty. Use of the framework would support the move to ‘consolidated billing’ whereby the information from individual sites was still available, but it was consolidated into a single invoice for payment. This would increase the Council’s understanding of water use and significantly reduce the amount of invoices being sent for processing.   Consolidated billing supported the transition to Corporate Landlord model of property management and would bring water in line with the management process for gas and electricity. This allowed for improved monitoring of cost, usage and identification of savings, in addition to enhancing knowledge of the Council’s estates, reporting and budget setting opportunities. Use of the software to provider bill validation would help identify errors and potential savings through leaks, incorrect billing.   The existing ‘Systems Link’ software used for the management gas/electricity use could be used to provide the same bill validation for water so the Council would not need to purchase new software.   Electricity and Gas were also purchased under ESPO frameworks and use of the framework would provide synergy across the Council’s utilities. Moving towards a single team managing the water invoices would improve query resolution as specialists resolve issues at a corporate level. The framework also offers additional paid-for services including leak detection and rectification and tariff review, for example surface water drainage banding.   Alternative Options Considered Option 1 - Use a similar framework contract with Crown Commercial Services: Water, Wastewater and Ancillary Services 3 valid until 8th July 2028. This was also awarded to WAVE.   Option 2 - Leave the water invoicing ‘as is’ with individual sites managing the invoicing. This option however would not deliver anticipated benefits and efficiencies.   Option 3 - Run a Council own tender to appoint a provider directly. This would entail additional resources in developing the tender and wouldn’t provide the support and economies of scale from being part of a larger, multi authority framework. There were also no guarantees of lower prices as with the reduced number of sites from a single client, costs may be higher.   Resolved:-   (1)          that delegated authority is given to the Director for Economy, Environment, and Infrastructure, in consultation with the Portfolio Holder for Finance, Resources and Assets to approve a direct award from the 1181 Eastern Shires Purchasing Organisation (ESPO) Framework 1181_23 and appoint Anglian Water Business (National) Ltd (T/A Wave) to provide the billing and other ancillary services via the ESPO Water, Wastewater and Ancillary Services framework contract for four years commencing from January 2026;   (2)          that delegated authority is given to the Executive Director for Place to take such actions are necessary to allow for the management and invoicing for water meters being brought under the same ‘consolidated billing’ model as used for gas and electricity;   (3)          that the Service Director - Governance (Monitoring Officer) is authorised to complete all legal documentation in relation to (1) and (2) above;   (4)          that approval is given to extend an offer for schools to be invited to join the framework once it is established for the corporate estate.

Date of Decision: December 10, 2025