Now construction industry weighs in with attack on Business Stream

SCOTTISH Water's business supply arm is responsible for damaging delays to vital construction projects north of the Border, the head of an influential industry trade body has claimed.

Michael Levack, chief executive of the Scottish Building Federation (SBF), accused Business Stream of failing to connect supplies to new developments quickly enough.

And Levack revealed that the SBF – which has about 700 members – has set up a working group to monitor what it claims are the failings of utility companies and will report its findings to ministers .

Last night Business Stream – a wholly owned subsidiary of Scottish Water that operates as an arms-length company – mounted a stout defence of its service.

But Levack's comments will resonate throughout the Scottish business community.

Yesterday Levack claimed it was not uncommon for firms still to be waiting for a connection more than a year after submitting their initial application.

He said: "Getting connection to utilities has been a huge problem for companies for more than five years. I have had companies phone me up worried that they are going to go bust because they can't afford to wait any longer for connections.

"Deregulation of the industry has made no difference – it was bad before and it is bad now."

Levack told The Scotsman he was incredulous that Business Stream had recently won the Business Performance of the Year category at the European Business Awards.

He added: "I honestly believe the Scottish construction sector will be somewhat surprised that the performance of a utility company is being recognised in this manner.

"The reality on the ground, or should that be in the ground, is somewhat different."

Levack's criticism came after English developer Evans Easyspace last week claimed it was at risk of losing tenants because of a two-month delay in opening its £2.5 million office park at Bathgate. Business Stream took 11 months to process its water connection application. That came just weeks after Scottish builder Algo Blairgowrie warned it had faced multiple delays in getting its site in Peebles connected.

In both cases, Business Stream pledged to fast-track the companies' applications after being contacted by The Scotsman.

Levack added: "What always amazes me is that the executives of the utility companies seem to be oblivious to the true performance of their companies.

"Let them try making an application for a supply to a new site, within the allotted programme.

"I believe the senior management is more focused on measuring many meaningless key performance indicators that lose true customer service in the translation."

The chief executive of Business Stream yesterday defended its record, saying the firm was working to increase efficiency of connections.

Mark Powles said: "On the processing of new connections applications, this is an area that has been challenging for us and the market as a whole.

"We are working hard with Scottish Water, the regulator, customers and developers – including the Scottish Building Federation – to make the process run more efficiently. We are focused on getting this right."

And a spokeswoman for the regulator, the Water Industry Commission for Scotland, said: "Business Stream is performing well and is working towards meeting its efficiency targets."

Business Stream was spun out of Scottish Water at the end of last year ahead of the deregulation of business water supply north of the Border in April.

Companies in Scotland now have the choice to buy their water from either Business Stream or its one competitor, Satec.