UK food and drink companies are beginning to harness the financial benefits of water efficiency but could do more to access the greatest cost savings - and prepare for key changes due to affect industry in 2010.

This advice comes from the Water Technology List (WTL) and sustainability experts Envirowise, following research into businesses’ responses to the recession. A survey of more than 500 managing directors and financial directors has revealed that 35 per cent of companies have already reduced spending on utilities, including water and energy, as part of wider efficiency drives.

Yet there remains further potential for food and drink businesses to realise the benefits of water efficiency. A separate Envirowise survey has shown that a staggering 61 per cent of senior managers do not know how much money their company spends on water, while some 57 per cent are unaware of the potential cost savings available through reducing water usage - typically between 20 and 50 per cent of water supply and disposal charges.

Tackling water usage could also lessen the impact of price changes as a result of the EU’s Water Framework Directive. This obliges member states to implement ‘true cost’ pricing by the end of 2010, and penalises those organisations that are less water-efficient. Furthermore, it can contribute to carbon reduction targets and help businesses prepare for the introduction of the Government’s CRC Energy Efficiency Scheme, which from April will set out larger companies’ carbon usage in public league tables.

Envirowise water specialist Claire Sweeney said: “There are many highly effective steps which businesses can take to improve their water efficiency, enabling them to access financial benefits and mitigate against the risk of future changes. These include water-saving devices and water recovery and reuse technology such as membrane filtration systems. These give a high level of purification and enable a large proportion of waste water to be reused for processes such as heating, cooling and cleaning, reducing the overall volume of water needed.

“The cost of implementing water-saving devices and water recovery and reuse technology is often cited as the main barrier to water efficiency, but the savings available from lower mains water and disposal charges can be significant. What’s more, UK businesses which pay income or corporation tax can also claim tax relief on recovery and reuse systems and water saving devices through the WTL, which lists more than 1,800 eligible products and forms part of the Enhanced Capital Allowance scheme for water-efficient technology.”

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