Legislation and Regulation influencing the efficient use of water in England and Wales

1
Legislation and Regulation influencing the
efficient use of water in England and Wales

• David Howarth
• Water Resources Policy Manager (Demand
  Management)
• Environment Agency

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Legislation and Regulation

• Background to regulatory regime
• Direct abstraction
• Public water supply
• Forthcoming legislation
• Perspectives/discussion
• Conclusions

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Current Regulation in England and Wales - the key
players
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Water use by Abstraction
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Regulatory policies by use of water
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Public water supply - by volume
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Regulatory policies by use of water
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Water company water efficiency activity 1997-2002

• 419,719 supply pipes repaired
• 73,002 supply pipes replaced
• over 7m cistern devices distributed
• over 10m audit packs distributed to households
• 382,707 household water audits conducted
• 120,199 audit packs distributed to non-households
• 30,532 non-household water audits conducted

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The Water Supply (Water Fittings) Regulations 1999
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Development Planning

• No PPG for water resources
• Planning and Compulsory Purchase Bill
• Supplementary Planning Guidance?
• Role of Section 106 Agreements
• Water companies not statutory consultees

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Ofwat and the 4th Periodic Review
Where demand management is part of an efficient
water resource plan Ofwat would allow capital and
operating costs in price limits and make
allowances for the expected loss of revenues (if
measured demand is affected)
but Companies will need to provide robust
estimates of the costs and savings of the
efficient use of water initiatives based on
actual (measured rather than estimated) changes
in consumption. We also expect companies to state
their assumptions about the sustainability of
savings and to demonstrate that these are
consistent with available evidence
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Demands 1992/93-2001/02 - PWS
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(No Transcript)
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The Water Bill - original clauses

• A general duty on water undertakers to further
  water conservation in carrying out their
  functions
• Abstraction licences without a time limit may be
  revoked or varied without compensation from 2012
• Water Resource Plans and Drought Plans statutory
• DG to be given a sustainable development duty

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Water Bill - possible amendments

• Duty to promote water conservation to be placed
  on Ministers, government departments and public
  bodies
• Environment Agency should ensure efficient use of
  water by all abstractors
• A water efficiency labelling scheme

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European Framework Directive

• Article 5 - River Basin characterisation process
• Article 9 - Recovery of Costs of Water Services
• Article 11 - Programme of Measures
• Article 14 - Public Information and Consultation

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Perspectives/discussion (1)

• Abstraction licensing - gear change needed and
  coming
• Water Resources Plans/PR04 - level playing field
  in principle, but in practice?
• Water Supply (Water Fittings) Regulations - could
  be more of an instrument for change
• Leakage targets - success but being challenged

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Perspectives/discussion (2)

• Water Efficiency Duty - has been defined by
  basic, minimum level of activity
• Water charging policy - compromise, but
  opportunities not being taken. Tariffs?
• Development Planning - offers potential, untested
• Enhanced Capital Allowance - AN INCENTIVE !

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Conclusions

• Regulation has brought clear roles and
  transparency
• Demand currently stable success?
• Almost entirely stick based regulation
• Catch 22 on water co. funding needs resolving
• Potential for improvement remains
• Water Bill and WFD could make significant
  contributions

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www.environment-agency.gov.uk/savewater
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