Water competition : a way forward : a model to stimulate discussion within the industry

This report proposes a model for water competition in the United Kingdom in line with the Competition Act 1998. Three key players are envisaged: retailers, network operators and water producers. The report proposes that the existing water network should be divided into a number of geographic zones in which water supply can be compared with demand. Retailers would purchase water from water producers to cover their forecast demand in each production zone. Network operators would compare the retailers' demand forecasts with the water producers' production schedules and then use a water balance market to adjust production in order to maintain supply and quality, and overcome any network constraints. An integrated central service would be required to maintain data on customers, calculating daily consumption for each retailer, and for administering settlements for payments for use of balance water. The report discusses water quality, legal, and contractual implications of the model and calculates how much it would cost to implement.