Blackpool Council has been granted a self-supply licence to manage and monitor its own water usage across 120 sites.
The council is the first public sector organisation to successfully apply to the Water Services Regulation Authority (Ofwat).
The licence will enable to the council to buy water and wastewater services directly from United Utilities. It will also take over managing its own retail services such as meter reading, administration and billing.
Cllr Fred Jackson, the council’s cabinet member responsible for the environment, said: ‘We are the first public sector organisation to apply for and secure this licence. There are many benefits such as reducing administration costs and cutting out the margin that goes to others in the supply chain. We will pay the price that retailers pay to the water company which will deliver significant savings.
‘The licence also gives us a voice as it offers certain rights such as voting rights with organisations and companies such as Ofwat and United Utilities which can help influence the future development of the water market.’
The licence is expected the save the council up to £194,000 over three years.