Regulator favours single company lead for each strategic resource solution

RAPID, the Regulators’ Alliance for Progressing Infrastructure Development, favours a ‘lead party model’ under which a single water company would take responsibility for the development of each strategic water resource solution being considered under its programme.

That emerged in a consultation, open until 29 February, on policy options on commercial frameworks for strategic water resource solutions.

RAPID explained it favoured water companies “adopting a broadly common model approach across the portfolio of RAPID solutions”. This should feature a lead party model, under which one water company would "deliver" the infrastructure on behalf of itself and other involved water companies (importers/exporters). This would involve procuring and appointing through competitive tender (Direct Procurement for Customers or Specified Infrastructure Project Regulations) a third party provider (Infrastructure Provider/Competitively Appointed Provider), which it would contract with to provide the infrastructure. The lead water company would also enter bulk supply agreements for imports and exports.

Elsewhere in the consultation, RAPID said it would update guidance on bulk supply transfer agreements for RAPID solutions, which will also consider: the standardisation of contract provisions, operation of solutions at times of drought or other operational incident, charging guidance and possible future use of statutory codes and / or charging rules.

RAPID explained: “The current regulatory and commercial frameworks are not fit for purpose to support the delivery of these [multi-party regional] solutions …We see a need to provide the sector with information as to how solutions will be regulated and how we expect commercial arrangements to be structured.”

The RAPID programme will provide in total over 2,300 megalitres of water a day, through reservoirs, transfer schemes and other resource solutions.