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Ofwat steps up bioresources information requirements

by Karma Loveday

Ofwat has published a new Direction under Condition M1 for the licences of the 11 English and Welsh sewerage companies setting out expanded information requirements regarding their reporting of bioresources information. The direction requires standardised, defined, comparable and reliable information to enable potential market participants to identify opportunities to supply services in the treatment, transport, recycling and disposal of bioresources; and to enable Ofwat to monitor the market effectively.


This updated the previous direction dating to October 2017 and followed a March 2021 consultation, driven by concerns that sludge trading remains focused on short-term trades and is limited in nature. The new direction implemented with only minor adjustments the proposals consulted on, 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.


Companies are now also required to submit additional information to Ofwat for the purpose of it producing annual bioresources market monitoring reports. This includes 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.


Respondents to the consultation were largely in favour of the changes.

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