The Environment Agency has published its review of the revised draft regional and water resources management plans published by water companies in England.

Image source: Environment Agency

Introducing the review, the Environment Agency (EA) said the scale of the challenge we face increases with time and, by 2050, we are looking at a shortfall of nearly 5 billion litres of water per day between the sustainable water supplies available and the expected demand.

The EA said this is more than a third of the 14 billion litres of water currently put into public water supply. The deficit has risen in the revised draft plans due to updated demand forecasts, additional reductions associated with protecting and improving the environment, and better representation of the baseline supply position without drought measures included.

The review says:

“We also have concerns, following recent droughts, that some water companies’ supplies are not resilient enough. The latest water resources management plans produced by water companies are critical for society, setting out efficient solutions that give value and reassurance to customers. Once finalised, the effective delivery of these plans will be extremely important to ensure sustainable growth. If delivery is unsuccessful, we will face growing water supply deficits.”

Following consultation on draft water resources management plans, the water companies have now published statements of response and revised draft plans. The statements build on the draft plans and include changes in response to consultation feedback, and an update to the guidelines following policy and legislation changes.

Acciording to the EA, the revised draft plans have significant improvements and mark a key milestone before plans are finalised. The Department for Environment, Food and Rural Affairs (Defra) has written to companies individually about next steps for their water resources management plan, with many requiring further actions before the plans can be finalised.

The environmental regulator says the plans are a positive step forward as, upon implementation, they should:

• improve resilience to extreme droughts
• ensure we are prepared for the future impacts of climate change
• serve a growing population and thriving economy
• mark a transition to longer term planning to protect and improve the environment

According to the Environment Agency, the success of ensuring the nation’s future public water supply will depend upon a twin-track approach: delivering new supplies of water; and reducing water demand, by improving water efficiency and reducing leakage. Many new supply options will take at least 5 to 10 years to deliver, therefore "significant and urgent action" is required to design, plan, and build these, the EA says.

Demand reductions are crucial, particularly in the short term. The Environment Act 2021 sets a target to reduce the use of public water supply in England, per head of population, by 20% by 2037-38 from the 2019-20 baseline. The current revised draft water resources plans would deliver a 22% reduction in water use per person by this time. This has increased from the 17% in the draft plans and reflects the increased ambition by companies in their revised plans, showing the industry has embraced the new water demand target.

The Review points out that the government will be looking to water companies to act quickly and take significant steps forward on installing smart meters and delivering on their wider water efficiency commitments and reducing leakage.

Currently around 60% of household properties are metered in England, most of which require a physical visit to record consumption. The EA says the visits generally happen once or twice a year, limiting understanding of household water use.

The review states:

“We, the Environment Agency, are therefore asking water companies to stop installing these types of meters and instead rollout smart meters which capture daily and sub-daily usage data. This rapid and essential transition needs to be prioritised. We expect all water companies to start installing smart meters from 2025, and to replace the current basic meter stock….

“We also expect water companies to rollout smart meters for business users, working in conjunction with retailers.”

The EA says the government is seeking a 9% reduction in non-household (business) water consumption by 2037-38 from 2019-20 levels as part of delivery of the water demand target.

The review points out that the revised draft plans currently achieve a reduction of 6.1%, describing this as “a marked increase in ambition from draft plans”. However, this still falls short of the 9% reduction sought.

The EA says the water companies are now planning for a step-change in smart metering for non-households, commenting:

“As this is delivered over the coming years, we expect the industry to explore what further activity can be taken to stretch water demand reduction in businesses to the 9% sought by 2037-38.”

The Environment Agency warns in the review that it is concerned around the delivery of demand reductions, given recent widespread challenges in achieving planned reductions on household water consumption. The EA says delivery risks need to be well considered and mitigated by water companies as they finalise plans, pointing out that the companies “have assumed significant growing benefits from government interventions, including the mandatory water efficiency label.”

Commenting on the need for new water supplies to meet demand and the water companies’ proposals for the delivery of major water infrastructure schemes under the RAPID programme, the review says:

“The decisions around the delivery of multi-billion pound water infrastructure schemes taken in these plans will be critical to securing water supplies for generations to come, marking a shift towards investment in long-term water resources resilience. The 2025-2030 period will be vital for reducing uncertainty around the scale of need and completing detailed design and planning of the new supply options. We expect the water industry to already be taking steps to prepare for, and enable, the effective delivery of their plans….

“Over the next 25 years, there are significant uncertainties and risks. It is essential that these plans are robust enough to effectively manage these risks…

“Delivery of plans must also be closely monitored and tracked against targets and commitments. This will allow early action to adapt where necessary and, address any potential problems.”

Click here to access the full review online