Does the Welsh Government intend to intervene to change how much Dŵr Cymru can charge Severn Trent Water for water from the Elan Valley?
The Elan Valley reservoir agreement is governed by a set of complex, long-term contractual and financial arrangements between Dŵr Cymru Welsh Water and Severn Trent Water. Changes to the agreement requires the approval of both parties.
The agreement pre-dates the devolution settlement and as such the Welsh Government has no formal powers to change the terms of the agreement. However, we are considering how trading agreements can be revised to better reflect current and future circumstances in relation to water resources management.
The Welsh Government works closely with Wales’ water companies, regulators and other partners on a wide range of issues, including water resource management matters.
Any development that involves sourcing water from Wales must demonstrate economic, environmental and wider benefits for the people of Wales as well as ensuring there is enough water in future for those that need it. Water companies wholly or mainly in Wales must follow Welsh Government’s guiding principles and Welsh Ministers have a statutory role in the sign off process for any plans.
Any proposals that affect Wales will have regard to Wales’ interests and needs, in particular, ensuring sustainable management of its natural resources, and delivery of Welsh legislation and policy requirements, including how the proposals support the reduction in greenhouse gas emissions as well as addressing the climate and nature emergencies.