Ofwat seeks to boost bioresources information

Ofwat is consulting until 15 April on expanding the requirements on sewerage companies regarding their reporting of bioresources information.

The regulator said its monitoring of the market reveals that trading for sludge remains focused on short-term trades and is limited in nature. It has proposed amending the October 2017 Direction under Condition M1 of licences to also require market information on:

supply and demand – better information on the supply and demand for treatment capacity could help market participants to identify potential trading opportunities;

transport route information; and

information on renewable energy incentives.

On top of this, the consultation proposed companies should submit additional information to Ofwat for the purpose of it producing annual bioresources market monitoring reports. This included disaggregated data on third party sludge treatment (separating services undertaken by other regulated water companies and non-regulated companies); requiring information on how often companies have been approached by other regulated companies and non-regulated companies to provide sludge treatment services; and requiring companies to publish non-confidential elements of their market monitoring information at the same time as their annual performance report.

Ofwat added that it planned to consult in May 2021 on the provisional findings of its review of the bioresources market, which it launched on 19 October 2020.