Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
Water trading will help build a more resilient water supply system to mitigate climate change risks and reduce the impact on customers, according to Welsh Water.
The company said in a draft trading and procurement code that water trading “widens the pool” of potential resources it can draw on, helping alleviate the problem of scarcity.
“A potentially significant threat to our natural environment is climate change, which may result in more extreme weather patterns. Droughts and floods may become more frequent and more severe. Our water supplies may be at greater risk,” the firm said.
To mitigate the potential risks of climate change and reduce its potential impact on customers, the company said water trading will help build a more resilient supply system.
At PR14 Ofwat introduced water trading incentives to encourage water trading between incumbent water companies. These firms can only receive the PR14 water trading incentives if they produce, and are compliant with, an approved trading and procurement code.
Ofwat wants to ensure customers and the environment are protected in water trades and will now consult on whether or not to approve Welsh Water’s code.
The consultation will close 12 January 2016. The regulator said it would then approve the code or provide reasons for not approving it within six weeks.
“Where trades are proposed between other water companies or industrial customers and Dŵr Cymru [Welsh Water], we are committed to trading in a transparent, sustainable and responsible manner within the policy framework set by Welsh government and to the benefit of our customers and the natural environment,” the company said.
Please login or Register to leave a comment.