Severn Trent Water is proposing to sell water to Anglian Water, as eastern and southern England face severe drought this summer.
Despite dry weather in parts of the Midlands, Severn Trent said it was confident it will not need to follow the seven companies that announced hosepipe bans this week.
The firm has proposed transferring 30 megalitres of raw water a day – enough to supply 100,000 homes – from Birmingham to Newark via the River Trent.
David Essex, water strategy manager for Severn Trent, said: “This could be the first example of emergency water trading and a sign of things to come as water becomes scarcer and needs to be moved around the country.”
The project could start in May or June, a spokesperson explained, subject to feasibility assessment and Environment Agency approval.
East Anglia is one of the most parched areas of the country after the driest 18-month period in more than a century.
Southern and eastern England will see significant drought impacts this spring and summer even if there is above average rainfall, said the Environment Agency.
Sutton and East Surrey Water has become the latest water company to apply for a drought permit. If granted, it will allow the firm to take extra flow from the River Eden to boost Bough Beech Reservoir in Kent.
This article first appeared in Utility Week’s print edition of 16 March 2012.
Get Utility Week’s expert news and comment – unique and indispensible – direct to your desk. Sign up for a trial subscription here: http://bit.ly/zzxQxx