Ofwat has launched a new consultation on updating its current guidance for water trading and procurement codes.
Introducing the consultation, the water sector regulator said the guidance for trading and procurement codes is now over five years old and no longer reflects the latest market and regulatory developments.
Ofwat says that water trading can benefit customers, the environment and the water sector. To encourage water trading, the regulator’s water trading incentives offer greater rewards for exporters and lower costs for importers for new trades.
Water companies that want to claim the incentives are required to demonstrate that new trades comply with an Ofwat-approved trading and procurement code in order to protect customers and the environment. The requirement for codes and compliance with them ensures that only economically and environmentally beneficial trades will receive an incentive payment as part of the price review process.
The consultation provides an overview of Ofwat’s review of the guidance in light of the latest market and regulatory developments.
Deadline to submit responses to the consultation is close of business on 29 March 2018.
Click here to download the consultation document
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