Water Trading Prospectus


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Water Trading Prospectus

November 2015

Potential Water Surplus

Dŵr Cymru Welsh Water is committed to supporting economic growth in Wales and the areas of England currently supplied by our business. This prospectus provides an overview of water availability for industrial customers and other water companies that may require additional water supplies into the future and will form the basis for commercial discussion. Welsh Water’s supply area is currently split into 24 Water Resource Zones. A Water Resource Zone being the largest area in which all water resources can be shared. We published our latest Water Resource Management Plan in April 2014. This Plan reports a supply against demand balance for each of these zones for the next 25 years.

Our forecasts predict that nineteen of our 24 Water Resource Zones have surplus water available when compared to the forecast demand. A marginal balance will be maintained in the remaining five zones through a staged asset investment programme.

These balances are predicated on the use of national and local government growth information as well as our own assumptions around the impact of growth on water demand. We will act to ensure that all zones retain a surplus as our planning assumptions are updated over time.

Clwyd Coastal

2.0 3.0

Dyffryn Conwy

North Eryri/Ynys Mon Lleyn/Harlech

Alwen/Dee

2.0

4.0 0.8

5.0

0.0

0.0 Blaenau

Bala

Ffestiniog

Barmouth

0.0 South Meirionydd

0.0 Tywyn/Aberdyfi North Ceredigion

3.0 0.7 Elan/Builth

Pilleth

Mid & South Ceredigion

4.0

Llyswen

Brecon/Portis

0.0

Vowchurch

Pembrokeshire

0.0

Whitbourne

Hereford CU

1.0 0.0

0.0

6.0

0.7

2.0

Ross on Wye Tywi CUS

33.0 SEWCUS

7.0

Figure 1 indicates the minimum level of surplus within each zone to the end of the AMP6 price review period in 2019.

Monmouth

1.0

As part of our water resource planning we have also looked at the most cost effective ways of generating additional water surpluses to meet inward investment in Wales and beyond if this is required.

It would be possible to transfer some of this available water resource outside of our water supply area but this would need to be to the benefit of the Welsh Water customers and supported by our regulators.

Significant amounts of water could be made readily available in some areas including, South East Wales and North West Wales. However, the cost of developing solutions is dependent upon the specific location of new development and this will also determine the lead time needed for any infrastructure construction.

The transfer of water over long distances is inherently expensive due to the infrastructure needed and operational costs over and above those necessary to supply more local developments.

Figure 2 shows the level of additional water surplus that could be generated to meet future demand through sustainable water resource options within the bounds of existing abstraction licence constraints.

We are interested in discussing any requirement for future water need with industry and neighboring water companies. We have both a commercial and developer services team that will deal with specific requests supported by water resources staff. For further information please contact: Dr. Ian Brown Head of Water Resources Dŵr Cymru Welsh Water Tel: 07920 720 887

Clwyd Coastal Dyffryn Conwy North Eryri/Ynys Mon

Alwen/Dee

1.5

Lleyn/Harlech

Blaenau Ffestiniog Bala Barmouth South Meirionydd Tywyn/Aberdyfi North Ceredigion

1.0 Elan/Builth Mid & South Ceredigion

Pilleth

Whitbourne Hereford CU Llyswen Vowchurch

Brecon/Portis Pembrokeshire Tywi CUS

Ross on Wye

35 .0 SEWCUS

54.0

2.0 Monmouth