A Mid-Wales AM has called for the government to ensure that the "right price is paid" for Welsh water, after reserves from a Powys reservoir were mobilised to ease water shortages in England.

According to a statement from English water company United Utilities, Lake Vyrnwy is being emptied amidst threats of a hosepipe ban as supplies in the North-West of England run dry.

The company says the water is being used in areas around Cumbria, Cheshire, Greater Manchester, Lancashire and Merseyside, where demand has increased by an additional half a billion litres a day.

Plaid Cymru Mid and West Wales AM Simon Thomas said it was right and proper that water was shared across the UK, but that Wales should be properly compensated for use of it's natural resources, and called on the Welsh Government to make a statement on the situation.

"I'm perfectly happy that our water is shared throughout the United Kingdom; I think it's right and proper that a common resource is shared. But I also think it's right and proper that the right price is paid for the use of resources," he said.

"I think it would be very difficult politically if we saw any drought restrictions in Wales and water was flowing, shall we say, through English factories and towns without there being a quid pro quo in some of that. We just need to understand where the new powers under the Wales Act will be used by the Welsh Government to have discussions with the UK Government about the joint management, and appropriate management, of water resources in Wales.”

The movement of water from Wales to England has been a politicised issue since the Vyrnwy reservoir was built in the 1880s to supply Liverpool with fresh water as part of a controversial series of dams constructed to supply water to England's industrial cities. Upon completion, the Vyrnwy dam flooded the head of the valley and submerged the village of Llanwddyn. Earlier this year, the trade union GMB caused an outcry when they called on the UK Government to use the Cotswolds canals for them to transfer water from the Craig Goch reservoir in Plymlimmon mountain range in mid-Wales into the Thames.

Mr Thomas added: "On Tuesday in the Senedd chamber I asked the Welsh Government whether they would make a statement on water, while we're not in a position of drought yet in Wales, we do have a situation where we're starting to look at a situation that might arise with drought. Two months in a row of way-below-average rainfall is one of the triggers for drought—we're getting on for that. We're much better prepared than the summer of 1976. There is some concern now about water use in Wales, a potential water shortage."

United Utilities meanwhile called on customers "do their bit" to curb their usage in the North West of England, with demand for water running at 25 per cent more than the normal level.

"Greater Manchester is served from various water sources, at present we are using our integrated regional water network moving water from North Wales, the Lakes and the Pennines to keep taps flowing," they said.

"The hot weather means we’re seeing a massive increase in water consumption across our area. We're currently providing an additional half a billion litres of water a day above what we normally supply to our customers across the North West [England],

"The demand is so high, particularly during peak times, that we are struggling to get enough water around the system quick enough. If we can all do our bit this will reduce the risk of lower water pressure or no water at all."