Water regulator Ofwat is seeking views from interested parties about the development and implementation of a bilateral market in water resources in England.
A bilateral market would allow water resource providers, other than the incumbent water company, to contract directly for the supply of water resources with retailers operating in the business retail market.
Many organisations with water abstraction rights use water for their own purposes and currently do not supply any surplus water they may have within their abstraction licences to meet water companies’ needs.
Other significant entities with abstraction rights could include, farmers, landowners, non-governmental organisations and large industrial users such as brewers and power generators.
Ofwat are keen to hear from a wide range of stakeholders, particularly potential participants in a bilateral market, such as potential third party suppliers of water resources and retailers or self-suppliers in the business retail market and to understand their level of interest in participating.
They are also interested in views on some of the policy issues that would need to be addressed in order for a bilateral market to be successfully established, and how such a market could complement or conflict with other means of providing water resources.
Ofwat, the Environment Agency and Drinking Water Inspectorate are increasingly working in closer collaboration to address water resource issues via the establishment of the National Framework for water resources (including the development of regional groups); and the development of Regulators’ Alliance for Progressing Infrastructure Development (RAPID).
Deadline to submit responses to the call for information is Friday 6 September - click here to access the Ofwat COI.
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