£6m Scottish Water consultancy project 'will save it £76m'

Published on Friday 20 August 2010 21:41

SCOTTISH Water has defended its use of consultancy firm Capgemini to deliver a project it claims will create cost savings of £76 million in the next five years.

The company is believed to have come under attack for spending public money on consultancy fees for a project that aims to improve customer service, keep charges low and reduce operating costs.

Known as "Pace", the 6m project was launched to meet targets set out by the Water Industry Commission for Scotland.

Customer service delivery director Peter Farrer said WICS's criteria, laid out in Scottish Water's latest five-year plan, require the firm to reduce operating costs by 11 per cent, invest capital investment of 2.5 billion, improve its "overall performance assessment" (OPA) score by 30 per cent and improve customer satisfaction.

"As a business we only appoint strategic partners when necessary," he said. "This partnership with Capgemini will assist us in continuing to deliver the massive savings that have helped make us one of the most financially strong companies in the UK water industry.

"The projects under Pace will help us save up to 76m net operating costs by 2015, increase OPA by more than 50 points and bring significant benefits directly to our customers in terms of efficiency and improved customer service."

The company added that 20 per cent of Capgemini's fees are linked to successful delivery of the financial benefits.

CBI Scotland director Iain McMillan said that the use of consultants allowed companies to avoid spending money on full-time staff with the necessary expertise.

"If they are really going to spend 6m to save 76m, then they are going to be saving 13 times the cost of the project," he said. "Providing they are realising savings, then it is money well spent."