Government Issues Call For Evidence On Changes To The Water Sector

The government has launched a Call for Evidence review where environmental groups, investors, members of the public and others are invited to share their views on potential changes to the water sector in the future, with the review open until April 23rd.

There are six areas where the Independent Water Commission (IWC) is seeking for views to be made known, including:

The strategic management of water

Here, views are being sought on how competing pressures and demands on the water system can be managed, as well as how strategic direction and management can be implemented at regional and national levels.

Economic regulation

Here, people are being encouraged to share their views on the Price Review process and industry-wide benchmarking, as well as financial resistance, investor returns and customer protections.

Environmental regulation

This covers how regulation can improve the environment and public health while protecting finite resources around the UK, with views sought on how utility companies are held accountable for non-compliance.

General regulation

In this instance, the government wants opinions and views on water sector legislation and its volume/complexity, as well as the functions and responsibilities of organisations like the Environment Agency, Ofwat and the Drinking Water Inspectorate.

Water firm ownership models

You can make your views known on the impact of public listing in comparison to private ownership, as well as how to ensure financial resilience.

Asset health/supply chains

Here, views are being sought on how to improve water firm infrastructure resilience, including pipes, reservoirs, pumping stations and water treatment plants, as well as the capacity and robustness of industry supply chains.

Commenting on the news, Sir Jon Cunliffe – chair of the IWC – said: “The problems we see today have not emerged overnight. Nor, do I believe, are they the inevitable consequence of a privatised regulated company model.

“Rather, they have developed over time and due to factors including poor decisions and poor performance by companies, regulatory gaps, policy instability and a history of ad hoc changes that have left an increasingly complex system that is no longer working well for anyone.

“Our task is to stand back from the current system and explore, with an open mind, potential changes. We should not forget that the prize here is significant – cleaner waters, growth and a stable, well-funded sector that can deliver essential, world-class services for future generations.”

What is the IWC?

The IWC was launched by the government in October last year, expected to form the biggest review of the sector since privatisation and coming as part of the government’s long-term strategy for ensuring that the country has a robust and stable regulatory framework to drive investment for cleaning up waterways, restoring public confidence in the industry and accelerating infrastructure delivery.

Recommendations are expected to come from the commission on how to address inherited issues to bring waterways back into good health while driving economic growth and meeting future challenges head on.

Legislation will be based on these recommendations to attract long-term investment and clean up the nation’s waters for good, supporting housebuilding and tackling water scarcity, important given that an extra five billion litres of water per day will be needed to meet demand by 2050.

This commission represents the third stage of the government’s strategy, with the water (special measures) bill also introduced to help protect the water environment, a bill that has just received royal assent and which has now been signed into law.

This gives regulators stronger powers to implement tougher action more quickly to bring water suppliers to task where they’re found to be causing environmental harm and failing their customers.

Industry watchdog Ofwat has also been granted extended powers to pay executive bonus payments if they don’t meet stringent environmental standards, or those in relation to customers and their company’s finances.

How can businesses help?

If you want to do your part as a business to protect water resources, you’ll find that there are many strategies to employ that will help you reduce your water footprint and start operating more sustainably across the board.

Your first step should be to have a water audit carried out, which will show you how and where you’re using water. Once you have this information, you’ll be able to identify the most appropriate water-saving solutions for your operations, making your business more water efficient and saving you money at the same time.

If you’d like to find out more about water audits and other such services, get in touch with the Switch Water Supplier team today.