Water trading can benefit customers, the environment and the water sector. To encourage water trading our water trading incentives offer greater rewards for exporters and lower costs for importers for new trades. To protect customers and the environment we require water companies1 that want to claim the incentives to demonstrate that new trades comply with an Ofwat-approved trading and procurement code. The requirement for codes and compliance with them ensures that only economically and environmentally beneficial trades will receive an incentive payment as part of our price review process.
The guidance for trading and procurement codes is now over five years old and no longer reflects the latest market and regulatory developments. This consultation provides an overview of our review of the guidance in light of these developments and should be read alongside ‘Trading and procurement codes – draft guidance on requirements and principles’ (see supporting documents below).
We welcome responses to this consultation by close of business on 29 March 2018. Please email responses to [email protected] or post them to: Trading and procurement codes guidance review, Ofwat, Centre City Tower, 7 Hill Street, Birmingham B5 4UA.