Ofwat ‘s latest consultation, ‘Promoting water efficiency in wholesale charges for business customers’ has been launched with the aim of promoting water efficiency for larger water users. Ofwat is reviewing current and potential wholesale charging structures for larger users and examining the rationale for offering discounts. The water industry regulator says it has also identified several options for how it might amend the Wholesale Charging Rules (WCRs) to enable reforms aimed at better environmental and social outcomes.
Under section 66E of the Water Industry Act 1991, Ofwat is required to issue rules for water and wastewater companies’ wholesale charges for businesses, and to revise these rules if, having regard to Government charging guidance, it considers that it is appropriate to do so. Ofwat said the consultation highlights the growing awareness of the need to tackle water scarcity and the importance of water efficiency, and the potential for confusion about the value of water arising from the provision of discounted charges to large business customers. The consultations discuss the current and possible future charging structures for large users and options to amend the WCRs to enable companies to place more weight on water efficiency considerations when setting wholesale charges.
The consultation relates to water companies wholly or mainly in England and wholly or mainly in Wales.
