In December 2015, OFWAT released its Water 2020 consultation 'Regulatory Frameworks for Wholesale Markets' and proposed the introduction of a market for sludge within the water industry in England & Wales. This direction towards a separate price control for sludge will require Water & Sewerage companies (WASCs) to have a clear understanding of their sludge operations including the unit cost to treat. A sludge market has the potential to provide opportunities for WASCs and new market entrants to optimise the way sludge is managed, resulting in lower costs for customers and a more efficient use of resources. Understanding the scale of the opportunity is critical for companies interested in being part of a future sludge market. Existing data and processes hold the key to understanding the opportunity, the challenge is making an optimal decision using all of this information.
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