Water trading incentives: Portsmouth Water’s Draft Trading and Procurement Code

Water trading incentives: Portsmouth Water’s Draft Trading and Procurement Code

Published date: June 27, 2018
Closing date:

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About Consultation

In the 2014 price review Ofwat introduced water trading incentives to encourage water trading between water companies. Water trading can benefit:

  • the environment, by allowing scarce resources to be optimised between company areas as well as within them; and
  • customers, as it can allow more expensive investment in developing new resources within a company’s area to be deferred, reducing future upward pressures on bills.
  • water companies, by enabling companies to share in cost savings from trading instead of investing, and providing opportunities for companies to profit and innovate from trades

Companies can only receive these water trading incentives if they produce, and are compliant with, an approved trading and procurement code. The requirements for the code are set out in Trading and procurement codes – guidance on requirements and principles published in May 2018. As part of the approval process we publish a company’s draft code on our website for comment.

This consultation is about a trading and procurement code for Portsmouth Water. Following the conclusion of this consultation period the code will either be approved or we will provide reasons for not approving it.

Where to send submissions

This consultation will be open for four weeks. Any representations about this code should be sent in a single written submission to FAO Rachel O’Reilly, Portsmouth Water’s Trade and Procurement Code Consultation Response, Ofwat, Centre City Tower, 7 Hill Street, B5 4UA and received no later than 25 July 2018. Submissions can also be emailed to: [email protected]