In the 2014 price review Ofwat introduced water trading incentives to encourage water trading between incumbent 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.
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 Appendix 3 of our final PR14 methodology statement and as part of the approval process we publish a company’s draft code on our website for comment. Following the conclusion of this consultation period we will approve the code or provide reasons for not approving it within six weeks. This consultation is about a trading and procurement code for Thames Water.
Where to send submissions
Any representations about this code should be sent in a single written submission to Peter Hetherington, Principal Associate, Ofwat, 21 Bloomsbury Street, London WC1B 3HF so as to be received no later than 19 April 2016. Submissions can also be emailed to: [email protected]