The Department of Environment Food & Rural Affairs has published a joint letter to water companies on behalf of Defra, the Environment Agency, the Drinking Water Inspectorate and Ofwat setting out plans to build resilience in water resources management in England.
Outlining the plans, Sarah Hendry, Director, Floods & Water at Defra said that meeting customers’ water needs in a safe, resilient and efficient way, while protecting the environment was becoming ever more challenging, commenting:
“Water resources face increasing pressures from climate change, population growth, societal expectations and increasing environmental aspirations. To meet this challenge we need ambitious and co-ordinated leadership across industry, government and regulatory bodies.”
“While we think water companies need to own this challenge, we will work jointly to support and facilitate your efforts.”
According to the environment and industry regulators, there is a need for:
- Increased ambition in the forthcoming company business plans for the 2020 to 2025 period.
- Regional water resource planning that transcends company boundaries and identifies optimum solutions for the region, and the nation as a whole.
- Greater use of markets and competition to ensure solutions are delivered efficiently.
- Clear, joined up direction from government and regulators.
- A responsive regulatory approach to deal with issues as they arise.
The regulators want companies and regional groups to use the PR19 regulatory period to demonstrate tangible progress in increasing collaboration and developing creative strategic water supply solutions.
The letter says:
“The industry now needs to turn thinking into action. Water companies should take a genuinely regional approach to producing plans that transcend company boundaries and identify optimum solutions for the region as a whole.”
The water companies need to engage with other water users to develop cross-sector solutions, Hendry said, and are expected to commit "time and money" to regional planning and assessing the feasibility of regional and inter-regional solutions in the forthcoming regulatory period. This includes considering strategic transfers and strategic water storage infrastructure.
Regional groups will also be expected to “fully explore” the role of markets and greater use of competition in delivering their strategic water resource solutions. “Competition can reduce the cost of developing new resources and help deliver strategic and innovative solutions”, the letter says.
Sarah Hendry explained that the Environment Agency will lead the development of a new National Framework for water resources. This will develop and present agreed evidence on water deficits which will inform specific expectations and set clear challenges to the industry in advance of the next water resource management plans. Draft water company plans will then be challenged where they do not meet the expectations set out.
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