The Sainsbury Review of Science and Innovation has concluded the water companies have been forced to reduce investment in new technologies as a result of delivering price cuts.

Ofwat has appointed a new water and sewerage company – the first new company to offer both services since privatisation – by granting its twelfth inset appointment.

In his submission to the Independent Water Review Panel, which is currently undertaking a comprehensive review of existing arrangements for the delivery of water and sewerage services in Northern Ireland, the Northern Ireland Utility Regulator has said property value should not be the main determinant in funding for water and sewerage.

The second phase review of UK environmental standards and conditions for the Water Framework Directive (WFD) has now closed and summary documents published. The review has been undertaken by the WFD United Kingdom Technical Advisory Group (UKTAG) - a working group of experts drawn from the UK environment and conservation agencies – set up to provide coordinated advice to Government on technical aspects of the Directive.

On 18th September the Council finally adopted a Directive of the European parliament and of the Council on the assessment and management of flood risks. The adoption followed an agreement with the European Parliament in April and the Directive will enter into force upon its publication in the Official Journal.

The Head of Comparative Efficiency at Ofwat has written to the Regulatory Directors of the water companies to set out in greater detail Ofwat’s policy for the 2009 periodic review and the information requirements for the PR09 business plans the companies will have to submit for the next investment cycle.

Water companies in England and Wales still have much work ahead of them – despite improving performance and pumping over £4.3 billion into maintaining existing assets and investing in new facilities in 2006-2007, according to Ofwat.

Water UK, the body that represents all UK water and wastewater service suppliers at national and European level, has welcomed what it sees as a significant step by Defra towards solving what it describes as “the age-old problem of agricultural diffuse water pollution” at source where it is most cost-effective.