The Environment Agency is warning that whilst smart meters will help to ensure households and businesses use water wisely and through reducing leaks, this will not be enough - new supplies are needed and decisions about these need to be made now.

The warning comes in the Agency’s summary of England’s revised draft regional and water resources management plans, which looks at:

• How much water do we need?
• How will this deficit be solved?
• Multi-sector planning
• Next steps

Image:The breakdown of drivers of 2050 water need, split by region, impact stated in Ml/d

According to the Agency, 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 - more than a third of the 14 billion litres of water currently put into public water supply daily.

The regulator says 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.

“We also have concerns, following recent droughts, that some water companies’ supplies are not resilient enough”, the summary report says.

The Agency also acknowledges the revised draft plans have significant improvements and mark a key milestone before plans are finalised saying that on 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

The EA says the success of ensuring the nation’s future public water supply will depend upon a twin-track approach:

• delivering new supplies of water
• reducing water demand, by improving water efficiency and reducing leakage.

However, the report warns that 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.”

Describing demand reductions as crucial, particularly in the short term, the Agency says that 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.

The Environment Agency is calling on the water companies to stop installing meters which require a physical visit to record consumption and instead rollout smart meters which capture daily and sub-daily usage data. The report says:

“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 Agency points out that while the revised draft plans with regard to non-household water use would achieve a reduction of 6.1% which is a marked increase in ambition from the initial draft plans, this still falls short of the 9% reduction the Government is seeking.

The report says:

“Water companies are now planning for a step-change in smart metering for non-households. 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. “

However, the EA is concerned around the delivery of demand reductions, given what it describes as “recent widespread challenges in achieving planned reductions on household water consumption.”

“Delivery risks need to be well considered and mitigated by water companies as they finalise plans”, the EA says.

Far more supply options being progressed over the next decade than seen for a generation

Image: Havant Thicket Reservoir how it could look once completed in 2029

The report also points that “we can expect to see far more supply options being progressed over the next 10 years than we have seen for a generation.”

The completion of Havant Thicket, England’s first new reservoir for over 30 years is expected by 2030 and will be proceeded by many other new supplies in the 2030s, ther report says. The revised draft water resources management plans contain proposals for multiple new schemes by 2050, supplying 10 million litres of water per day (Ml/d) or more including:

• 4 new desalination schemes​
• 7 new reservoirs​
• 5 new water recycling schemes
• multiple new internal and inter-company transfers to share resources

According to the EA, the inclusion of options such as desalination and water recycling mark a transition to new supplies that are independent from rainfall. The options are well established elsewhere around the world and “expected to be an important step in ensuring resilient supplies in a changing climate.”

Delivery of multi-billion pound water infrastructure schemes will be critical to securing water supplies

Looking ahead to upcoming major supply-side schemes, the report 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 Environment Agency’s summary of the revised draft water resources management plans