Purpose

The decision is based on clear financial, operational, and environmental benefits evidenced through the ESPO/YPO Water Framework documentation.

Key reasons include:

Significant annual savings. The Council’s current default water and wastewater charges (£868,769) will reduce to £827,200, generating confirmed annual savings of £41,569 (4.78%) under the framework pricing.

Across the 3-year contract term, total forecast savings are £124,707 based on current usage and fixed uplift rates, providing improved cost certainty over the duration of the call-off

Water efficiency gains. Wave provides Active Water
Management (AWM) at no additional cost, offering monitoring, leak identification, alerts for abnormal usage, and tariff optimisation, with the potential to reduce consumption by up to 15% across LCC sites.

Improved service standards. The framework guarantees high-quality account management, accurate billing, complaint handling, performance monitoring and access to 24/7 emergency support.

Compliant procurement route. This is a legally compliant, pre-tendered route to market, avoiding the need for the Council to conduct its own full procurement exercise.

Better oversight and data visibility. LCC will have access to consumption dashboards, meter reads, historic billing data, and regular performance reports via Wave’s online portal.

Alignment with LCC’s Environment Policy. Enhanced monitoring, leak detection and proactive water management will reduce unnecessary water consumption, support the objectives set out in the Council’s recently adopted Environment Policy, particularly in relation to effective management of water resources and contribute to improved value for money.

Decision

Approval is granted to transition all eligible Lincolnshire
County Council water and wastewater supply points to the ESPO/YPO Water, Wastewater and Ancillary Services Framework (YPO1181), appointing Wave Utilities as the Council’s contracted supplier under a three-year call-off agreement. This will secure a compliant procurement route, improved tariff structure, enhanced customer service standards, and access to comprehensive water-efficiency measures.

Wave Utilities have provided pricing based on a 3-year call-off contract. While the ESPO/YPO Water Framework runs until August 2027 and permits call-off contracts of varying durations, the proposed 3-year term reflects Wave’s pricing model and offers a fixed uplift for the full term.

Alternative options considered

Option 1 – Do nothing / Remain on default tariffs
This option is rejected because it would result in continued higher annual charges (£868,769) with
no access to AWM, water-efficiency measures, or improved customer service.

Option 2 – Undertake a standalone procurement exercise
This option is rejected because this would require additional internal resource, offer no guarantee
of improved pricing vs the ESPO/YPO framework, and delay realisation of benefits. The framework
already provides a compliant route with competitively tendered pricing.

Option 3 – Partial implementation across selected sites only This option is rejected because
applying a mixed model creates administrative duplication, inconsistent billing arrangements, and
reduces the opportunity for aggregated savings and portfolio-wide efficiency gains.

Option 4 - Alternative frameworks were considered, including those operated by TEC and West Mercia
Energy. However, all major Public Sector Buying Organisations utilise the same
collaboratively procured national Water, Wastewater and

Ancillary Services Framework, with Wave Utilities as the sole
supplier. No other compliant public-sector water frameworks currently exist. The only alternative
would be to undertake a standalone procurement exercise outside a framework, which was rejected due
to the resource burden, lack of competitive advantage, and the risk of higher pricing. As a member
of ESPO, LCC remains eligible for any applicable rebate mechanisms
associated with framework usage.