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Ofwat plans water efficiency targets for companies
Water companies would face targets to help customers save more than 23 million litres of water a day (Ml/d), under proposals published today by Ofwat.
George Day, Ofwat's Director of Network Regulation, said:
"We have to use water more carefully and cut waste if we are to continue to enjoy safe, reliable water supplies.
"The new approach to water efficiency targets we are proposing will be challenging for companies but help to reduce wasteful use of water. This should mean lower costs, lower customer bills and good news for the environment."
Ofwat proposes targets to run initially for five years from 2010-2015. Companies will be expected to deliver real savings by providing household and business customers with information on how to use water sensibly, and promoting the use of water saving devices. All companies would have to achieve a minimum saving, while some would aim to save more as part of their plans to make sure that supplies are able to meet both current and future demand.
The proposed minimum annual saving of 23.3 Ml/d across England and Wales represents a 40% increase in the average amount of water saved by water companies annually over the past three years, excluding supply pipe repairs and replacements.
The targets would help companies to play their part in achieving the Government's goal of reducing individual water usage to 130 litres per person per day from its current level of around 150 litres. If the proposed targets remain in place until 2030 we expect them to contribute at least half of the required savings.
Water efficiency represents part of companies' work to reduce waste. They will also need to live up to their commitments to meet their leakage targets.
Notes to Editors:
1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.
2. Ofwat's proposals are outlined in the paper, 'Future Water Efficiency Targets: A consultation', which is available on its website, http://www.ofwat.gov.uk
3. One of the agreed actions of the Government-led Water Saving Group is to develop water efficiency targets.
4. In August 2007 Ofwat set companies voluntary water efficiency targets for 2008-09 and 2009-10. These were outlined in the letter to companies' regulatory directors, RD 15/07. At that time Ofwat said that it would set refined targets as part of the 2009 price review (PR09).
5. Proposed water efficiency targets for water companies using property numbers provided in the 2008 June return are set out below. 1Ml/d = one million litres.
Proposed minimum water efficiency targets, 2010-11 to 2014-15
Company Household Non-household Total Target
properties properties properties Ml/d
(000) (000) (000)
2007-08 2007-08
Anglian 1,804 114 1,918 1.9
Dwr Cymru 1,202 103 1,305 1.3
Northumbrian 1,056 59 1,115 1.1
Severn Trent 3,076 196 3,272 3.3
South West 674 72 747 0.7
Southern 945 61 1,006 1.0
Thames 3,232 216 3,448 3.4
United Utilities 2,783 172 2,955 3.0
Wessex 499 52 551 0.6
Yorkshire 1,921 130 2,051 2.1
Bournemouth & West 177 16 193 0.2
Hampshire
Bristol 448 34 483 0.5
Cambridge 114 10 124 0.1
Dee Valley 108 8 116 0.1
Essex & Suffolk 699 41 740 0.7
Folkestone 67 5 72 0.1
Mid Kent 225 21 246 0.2
Portsmouth 274 20 294 0.3
South East Water 549 45 594 0.6
South Staffs 504 29 533 0.5
Sutton & East Surrey 251 15 266 0.3
Tendring Hundred 66 4 71 0.1
Three Valleys 1,179 63 1,242 1.2
Industry total 21,853 1,490 23,343 23.3
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