|
|
Ofwat considers bulk water sales at unregulated pricesOfwat has floated the idea of requiring companies to sell bulk water at an unregulated price to stimulate water trading. Chief executive Regina Finn told a City briefing this week: "We think it will be necessary to incentivise appointed companies to trade their water with competing third parties - including with each other." She said this would involve letting companies sell a portion of their water to other companies and letting them earn returns "in excess of the usual regulated returns". She added: "This may involve allowing companies, or requiring them, to sell water at unregulated prices or at a price that is less tightly regulated." There would have to be corresponding protection for customers to avoid unwarranted price rises, she said. If such an upstream market developed, Finn said, there was a "strong case" to separate the companies' system operation functions to prevent incumbents from discriminating against upstream rivals. She suggested that this should be a "thin" system in the first instance, "which would only be responsible for daily operation of the network and maintenance scheduling". "This would include fewer functions than those in other UK utility industries and certainly less overhead in terms of cost and effort," she said. Source: Utility Week © Faversham House Group Ltd 2010. News articles may be copied or forwarded
for individual use only. No other reproduction or distribution is permitted without prior written consent.
|
Highlighted Jobs |
|
|