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The Drinking Water Inspectorate (DWI) has written to water companies and other stakeholders with further guidance on water quality issues for the upcoming Periodic Review of Prices (PR09).
The additional guidance takes account of the feedback from water companies and other stakeholders on the preliminary submissions for the drinking water quality programme for PR09, the Inspectorate’s assessment of, and response to, the submissions and the content of companies’ Draft Business Plans.
The guidance confirms the information for final drinking water quality submissions by water companies that require the support of the Drinking Water Inspectorate for inclusion in Final Business Plans for PR09, including the timetable and process that the Inspectorate will adopt.
The Inspectorate received 266 preliminary submissions for inclusion in the drinking water quality programme. Provisional support was provided for 112 schemes proposals, support was declined for 105 scheme proposals, and a decision is pending, awaiting provision of further information or on hold, for 33 proposals. The Inspectorate has also commended for support 16 schemes for catchment or land management. Further information on these schemes is provided below.
Where the Inspectorate indicated provisional support, the preliminary assessment letters (PALs) issued by the Inspectorate set out caveats where there were gaps in the information provided, which will need to be addressed in the final submissions. For most of the supported proposals, the caveats related to insufficient information on the detail of the preferred solution, in particular, breakdown of steps to be taken, cost effectiveness and cost benefit of the solution, timescale for delivery and how benefit of the scheme will be demonstrated. For some proposals, there was insufficient information on alternative solutions considered and reasons why the preferred solution had been put forward.
The DWI has also expressed its concern that the provision made for specific capital and operational expenditure for routine water supply system asset maintenance is difficult to establish in many Draft Business Plans. According to the Inspectorate, many companies are proposing significant increases in maintenance expenditure, much of which appears to be due to increased costs for Security and Emergency Measures Direction (SEMD) requirements, acceleration of meter installation, cost of energy and other operational costs, water resource planning and improved flood resilience. The DWI has said that it intends to seek confirmation from companies and other stakeholders that the provision proposed is sufficient for a sustainable long-term risk-based approach to water supply management.
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