United Utilities Scotland has won the water supply contract for all 281 Tesco stores and distribution centres in Scotland, saving the retailer more than 20 per cent from its water bills.

Tesco awarded the contract to United Utilities’ retail business following a competitive tender, based on the water company’s track record of achieving cost savings, environmental efficiencies and business resilience. The deal will save Tesco more than £800,000 a year.

Tony McHardy, sales director for United Utilities, said: “Water is an important part of Tesco’s in-store operations.

“By working in partnership with Tesco and drawing on our experience and scale, we can deliver a real cost saving as well as excellent service.

“It’s the largest commercial customer in Scotland and we think this award sends a strong message to the market about the quality of service we can provide.”

United Utilities is the largest water supplier in England and the second largest supplier of water and waste water services in Scotland, serving more than 3,000 sites.

The team has a track record of working with large organisations such as energy company SSE, shoe repair chain Timpson, and the Scotmid chain of supermarkets.

A spokesperson for Tesco in Scotland said: “This new relationship should make things better for our customers. In this case we can provide improved service and new efficiencies, supporting our objective of serving Scotland’s customers a little better every day.”

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