The independent taskforce established by Ofwat is to examine what resilience means for the wider water sector and identify key issues for both the water companies and the water industry regulator.
The water regulator set up the group in early 2015 as part of its new strategy and following the introduction of a new primary duty on resilience in the Water Act 2014.
The resilience objective requires Ofwat to secure the long-term resilience of the utilities’ water supply systems and sewerage systems with regard to environmental pressures, population growth and changes in consumer behaviour. This includes ensuring that the water companies take steps enabling them to meet the need for the supply of water and the provision of sewerage services to consumers in the long term.
Ofwat must also promote appropriate long-term planning and investment by the water companies, including increasing efficiency in the use of water and reducing demand for water in order to reduce pressure on water resources.
The task and finish group is now aiming to answer the following questions:
- What is resilience in relation to the provision of water and wastewater services?
- What do service providers need to consider as they think about how best to provide resilient water and wastewater services?
- What does Ofwat need to consider as it thinks about how best to regulate the water and wastewater service providers, having regard to its statutory duties, including its new duty on resilience?
In order to help answer the questions the task and finish group will deliver a series of short reports throughout the year covering:
- An overarching definition of resilience for water and wastewater
- A review of the current UK structures to ensure resilience for water and wastewater
- Short overlapping discussion papers looking at resilience from the following perspectives, economic, social, environmental, customer, physical, technological, climatic, security, regulatory/political.
The group is examining the water companies’ existing plans, including their AMP6 business plans, water resource management plans and climate change adaptation plans, to inform their work.
The group’s work will feed into Ofwat’s ongoing reform of its policy framework for the PR19 Price Review and culminate with a final report addressing the three main questions.
The group is chaired by Waterwise managing director Jacob Tompkins and is an independent body reporting to Ofwat and seeking to influence the sector more widely. It is expected to complete its work by early 2016.
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