Water as a precious resource
Without a clear programme of action, the UK's long term water security is at risk. The challenges we face are complex, having to balance a growing demand for water against the potential impact of climate change and water scarcity. Our aim is to have no water restrictions in the future but in order for this to happen there needs to be a clear programme of investment to enhance the supply and distribution of this most precious resource. We believe that the following action needs to be taken:
Maintain and enhance the UK's water infrastructure by securing private investment
Significant further investment is vital if the UK's water infrastructure is to maintained and enhanced for future generations. If the water industry is to be able to compete successfully for investment, it needs to be able to provide stable long-term returns. Critical to the water industry's attractiveness to long-term investors is the existing Regulatory Capital Value mechanism. This mechanism should be maintained if the industry is to be able to continue to secure the capital needed to make long-term investments.
Adapting to the impacts of climate change
Adapting to climate change requires the water industry to think beyond the current conventional approach to water. We have the oppportunity to adapt our assets effectively but the way in which flood defences in particular are currently managed, will require a fundamental review.
Improving the resilience of both the water and waste water networks
Recent weather events such as the very dry start to 2010 and the lengthy cold spell experienced this past winter has put tremendous stress on water and waste water networks. It is vital that policy makers, regulators, customers and companies come together to develop a shared understanding of issues relating to operational resilience and how it can be improved.
Enhance the ability to share water between regions
A nationwide 'super grid' connecting areas with ample water to those with lower availability is likely to be prohibitively expensive. However, where there is excess water, trading between companies could be incentivised to help deliver a more sustainable route for meeting water demand.
Reviewing water leakage rates to drive water company behaviour and innovation
Customers do not accept that leakage is inevitable, especially at a time when they are being asked to take measures to conserve water. Addressing leakage would also drive down the sector's operational carbon footprint and incentives need to be found to encourage companies to move away from the 'economic rate' mindset.
Investigate the potential of smart water meters
A new generation of smart meters could help customers control their consumption of water more effectively, whilst giving water companies the potential to incentivise off-peak use and manage the water network more efficiently
Provide mechanisms to support customers to better understand domestic water efficiency
Water companies must push water efficiency messages further through effective customer communication campaigns and help them make the link between their own water usage and their carbon footprint
Explore the potential for surface water and rain water to be used to meet domestic needs
Innovations such as using rainwater for toilet flushing and grey water to water gardens could help reduce some of the pressure on the clean water and sewerage networks and enhance the sustainability of the water sector. These ideas need to be explored.
Protecting raw water sources
To ensure future generations have the quality and quantity of water required, water catchments must be protected. By engaging with landowners, tenants and key stakeholders, we aim to manage land in a sustainable way and prevent the pollution of ground water sources such as natural aquifers and boreholes.
