If you are experiencing white residue or a haze on your bottles after washing, this will be as a result of either mineral buildup from the water or using too many detergent tablets.
Hard Water Deposits: The most likely cause of the white residue is mineral deposits from the water. All water contains minerals that can accumulate in the machine and leave behind a white film on the heating plate and/or bottles.
Below is an excerpt from the user manual explaining that the machine will remind you to descale every 20 washes. If you see hard water buildup on your heating plate you should descale more regularly and not wait for the machine to tell you to descale it.
Using distilled water is best, as it is heavily filtered to remove almost all minerals, however this does not mean that you cannot use tap water - you will just need to descale the machine more regularly.