12/03/10
An official plan for water resources calls for cooperation but proposes controversial and unproven solutions.
In March 2009, when the Environment Agency launched its Water Resources Strategy for England and Wales, it painted an alarming picture of a water-stressed future. It called for a "joined-up approach to prevent problem becoming a crisis". Among those required for conscription were government, regulators, water companies, business and the public.
One year later, the agency has released a plan, based on the strategy, that shows how "we propose to implement the national-led actions in more detail across England and Wales". It still wants cooperation, however, with "many industries, farmers, water companies,and other individuals and organisations".
The agency is to be congratulated on being open about its intentions and right to emphasise the need to involve others. But important aspects of the plan will surely raise doubts about practicality and prospects for success.
In spite of detailed consultation over years, the agency persists in putting forward controversial and as yet unproven solutions.
Twin-track?
Against an objective to increase the resilience of water supplies and critical infrastructure to reduce the impact of climate change, the plan wisely encourages farmers to use water more efficiently and develop small-scale reservoirs.
Regrettably, however, there is no equivalent reference to more storage to enhance the resilience of the public supply.
When the plan directly addresses 'Sustainable planning and management of water resources', it proposes actions to achieve the 'twin-track' approach of resource development and demand management in all sectors.
Again, resource development is suggested for agriculture, but only demand management for everyone else. For water companies, in particular, the agency plans to work with government to develop a mandatory water efficiency scheme "recommended in the interim report of the Walker Review of charging".
The uncertainty of demand and supply in the medium- and long-term make it vital for policy to be even-handed in the 'twin-track' approach, as the water industry has consistently advised.
(We would also recommend the authors look at the final Walker Review rather than being content with the interim. It is by no means clear that Walker supports a mandatory water efficiency scheme.)
Abstraction
Setting out to deliver flexible solutions that allow adaptation to climate change as it happens, the plan will "compulsorily convert all permanent abstraction licences to time-limited status".
Having to date failed to make a convincing case for such a radical and controversial step, the agency now promises full bureaucratic shock and awe. It will work with government "to refine and update the cost-benefit analysis...refine policy positions, develop guidance, and implement".
The industry has long argued that, in the majority of cases, compulsorily changing the status of abstraction licences is unnecessary and potentially counter-productive.
• It is not possible, or wise or, ultimately, cost-effective to protect the environment by weakening the public supply.
• It could reduce the confidence of companies and their investors and needlessly raise doubts about their ability to attract capital. The risk of stranded assets (and wasted capital expenditure) would certainly increase.
• It could prove inconsistent with another set of plan actions aimed at "removing barriers to licence trading within the regulatory framework". It seems unarguable that short time-limits would reduce the value and trading attraction of abstraction licences.
When the Water Resources Strategy was published last year, Water UK said it was "looking forward to working with the agency and the many other groups who share responsibility for ensuring a sustainable water supply".
Industry-agency relations are strong. The industry's commitment and enthusiasm remain. But neither will be strengthened by an over-prescriptive or cloth-ear approach to implementing the national plan.
For more information please contact
Water UK Communication
020 7344 1809 (out of hours 07833 450544)
