Incentives to Optimise Water Networks
In 2012, Ofwat published proposals for a network management incentive for companies to reveal network management information to support efficient resource use and development of competition.
A review of this incentive concluded that further industry dialogue is required to achieve clarity on its aims and objectives. The need for an incentive to encourage information provision is considered low given other existing and proposed regulatory mechanisms. However, greater collaborative working and information sharing is recommended to enhance efficient use of resources and network capacity.
Competition is the area where information provision requirements are uncertain and where potential barriers exist. Development of any regulatory mechanisms should be tied to the timescales for competition. An evolutionary approach is recommended, including piloting of different approaches. In the short-term, collaborative working is likely to be most productive. A financial incentive may ultimately be required, depending on the scale and costs of the information requirements.
|UKWIR Reference :- 13/RG/05/37||Published Date :- 19/02/2013|
|Retail Price (£) :- 17||ISBN :- 1 84057 666 9|