Water UK

Challenges

 • To achieve management of water resources that serves society and benefits the environment at reasonable cost
 • To realise the potential public health benefit of low cost, high quality drinking water by improving access, awareness and perception
 • To design future water regulation that is better at promoting customer service, environmental protection and economic development.

Challenge 1

To achieve management of water resources that serves society and benefits the environment at reasonable cost

In the UK we are in danger of taking water for granted. It may sound obvious, but water is the lifeblood of the water industry.

Management of water resources is the most important issue for water and wastewater service companies. Restriction or failure of public water supply brings a heavy price in terms of political standing, finance and public perception. It could be argued that the circumstances surrounding the drought in 1995/6 contributed to the 1997 water summit, the windfall tax on utilities, the harsh 1999 periodic price review, and a lot of bad publicity.

In recent years the industry has achieved a much more positive situation as one of the most reliable utilities. However a reputation for reliability has a downside.

Floods and droughts are an increasing part of life in Britain, but these natural phenomena are rarely seen to impact on water services. For example, we don’t experience large-scale interruptions to supply; our tap water is among the best in the world; and it is available to all at low cost. In short, for us, turning on the tap is almost a reflex act. Why not? Surely most of the time we have plenty of rain.

Supply and demand

In fact we do not have plenty of water. The UK has less water per head of population than any other European country. The balance between supply and demand is tight in many parts some in the North and West as well as the drier areas of the South East.
And known drivers are likely to make the situation even more difficult:
 • Climate change will result in less available water in summer. Population shifts will lead to localised supply problems.
 • Lifestyle changes will continue to increase peak demand.
 • Increased pollution of raw waters, combined with higher quality standards, will result in less available water or higher treatment requirements.
 • Greater focus on environmental protection will spotlight the effects of water abstraction for public supply and lead to relocation of many company sources.

Against this background of increased supply risk, we should recall what a secure supply of water really means. Water and sewerage systems are the most important public health requirements. At the same time, water is essential for functioning other service and industry sectors. Manifestly (though it is still worth saying) without a guaranteed water supply our infrastructure and economy would collapse.

Therefore it is essential that as a society we debate the future of water resources.
Should we develop new sources of supply, such as reservoirs and aquifer storage? Should we prioritise reducing demand? Or should we seek alternatives such as aquifer storage and recovery, wastewater reuse, or desalination? Such questions are not simply a matter of engineering. All various solutions have other impacts, societal, environmental and financial. The key question and the challenge for the future is how to achieve sustainable water resource management in a way that serves society and benefits the environment at a reasonable cost.

This is under constant consideration by the water industry. Yet once we look in detail it is obvious that the industry cannot, and should not, make the decisions alone. Future water resources management is inextricable from the future health and prosperity of the UK’s people and environment.

Collaborative decision-making

We welcome moves towards public involvement in decision-making laid out in the Water Framework Directive and the government’s decision to put water resource and drought planning on a statutory basis. More public engagement will help the industry achieve the aims of sustainability as long as thinking goes beyond single issues and recognises the need for solutions that have multiple benefits.

There are many examples - sites where biodiversity benefits, water quality improvements and flood risk reductions are delivered simultaneously. There are projects that are enhancing farm incomes, rural cohesion, environment protection, and water quality. And there are towns and cities where the quality of urban life is directly linked to the quality of urban waters. The water industry is playing a part in most of these but keen do more. Multiple water benefits depend on an integrated approach to catchment management and this requires, above all, partnership.

The future of water resources is being shaped today. We are witnessing a shift from separate water quality and quantity solutions to integrated approaches. This applies for example in planning to deal with floods. In the past we asked engineers to solve the problem for a single town and they built flood defences; now we are asking catchment management to reduce the impact of flooding and they build green spaces that double as storage in times of flood. Instead of working against nature, we are now starting to work with natural processes. The same is happening with water resources. Instead of looking solely at abstraction, there are moves to consider it in the wider context of catchment management, which holds out the chance of also enhancing recharge of the aquifer and making better use of the water we have.

For more information please contact: Jacob Tompkins 020 7344 1817

Challenge 2

To realise the potential public health benefit of low cost, high quality drinking water by improving access, awareness and perception

Understanding of the role water plays in a healthy lifestyle has grown fast in recent years. No modern discussion of the nation’s diet would be complete without consideration of the importance of fluid to normal bodily functions.

Medical research shows that drinking water has positive effects in physical performance, diabetes, obesity, urinary infections; reductions in certain cancers; lowered physical aggression; improvements in concentration, oral hygiene, cardio-vascular health and many other areas.

Water UK facilitates a group of health promotion organisations – The Water for Health Alliance - active in promoting drinking water. Alliance partners manage campaigns in their own areas, but share a common view of the benefits of drinking water in public health. The partners work closely with government and other stakeholders to influence policy on access to drinking water and awareness of its benefits.

Improving access

SchoolsProbably the greatest recognition of the benefits has been seen in schools. Water companies have taken a leading part, but many challenges remain:

 • Many children and teachers still have poor access to water when required.
 • Legislation is needed to ensure facilities are correctly installed, located and maintained to hygiene and building standards.
 • Drinking water must be fed from the mains, not storage tanks.
 • All schools should have a drinking water policy.
 • Update the Healthy Schools Standard to include defined water provision requirements, and not simply provision for hot and cold water with paper towels.
 • Encourage the very young children of today to grow up with an acceptance of drinking water as second nature.

Care homes for the elderly Many of the typical symptoms of adult dehydration - dizziness, confusion, fainting, falls, headaches, constipation, urinary tract infections, pressure sores and others - are also not surprisingly conditions found regularly in the elderly. Dehydration contributes to dizziness and fainting that can lead to falls, which are among the most common accidents experienced by elderly people. This happens due to a diminished thirst response or as a side effect of diuretics from medication or poor dietary application.

At present the standards that govern the work of Care Homes (Care Standards Act 2000 March 2001) are inadequate, only requesting that hot and cold drinks are freely available. There is no mention of water and so many care plans show caffeine, sugar and alcohol as effectively the only drinks on offer. But tea, coffee, high-sugar and fizzy drinks are not recommended anywhere else in public health.

HospitalsThe NHS now accepts dehydration as a serious problem, especially in older hospitals that have little ventilation and warm, crowded wards. Policy-makers see drinking enough water as a key part of their approach to good nutrition.

Yet in many hospitals patients and staff still suffer from a lack of facilities or must put up with bedside jugs of warm, unappealing water. Accident and Emergency facilities often discourage water provision, due to concern about patients drinking prior to triage or treatment. However while mains-fed water is rarely available, facilities normally allow access to vending machines, kiosks and cafes serving caffeine-based and sugary drinks.

Awareness and perceptionDrinking enough water makes real improvements to people’s lives. Much has been achieved already in local communities and the whole of society will benefit if people stay healthy. Unfortunately MORI research shows that while a good number of people seem to be aware of the amount of water they should be drinking, and there is some understanding of the health benefits good hydration may bring, they continue to drink too little clear fluid.

At the same time, the perception of water as either boring, or in bottled form expensive, means that many choose not to turn to these products as the first option.

There are many more parts of society that could be better informed about the benefits of drinking more water, for example motorists, those involved in heavy manual labour, air cabin crew and passengers, doctors, universities, pregnant mothers. Continuing research shows a growing list.

The challenge for water companies is to go on building customers’ awareness of the benefits, but also to improve perceptions of the high quality tap water that is universally available to them at minimal cost. This will involve more attention to aesthetic qualities such as taste and smell. But it may also take time for everyone to feel they can trust their tap water, especially when it may not be in everyone’s interests to encourage this.

For more information please contact
Nick Ellins 020 7344 1808

Challenge 3

To design future water regulation that is better at promoting customer service, environmental protection and economic development

The water industry’s strategy for the medium-term is to build a stable future on the back of present success. This means continuing to deliver the economic, environmental and service benefits everyone now takes for granted. The industry can point to a consistent record. We’re creating a record of investment and operating success that is transforming our reputation.

Can the industry continue to be successful? Yes, but we have to face some tough issues. For example:

 • Need for high investment set to continue for foreseeable future
Politically sensitive and vulnerable to political risk
 • The regulation system may fail to keep up with industry needs

Regulation fit for purpose

The Government has been active on water issues. The 1997 water summit, in which government set tight controls and targets for the water companies, showed strong leadership. Defra itself, which brings together water, environment and land-use issues, is a good example of a holistic policy unit. One of its outputs, the policy vision document 'Directing the flow', brings together current and future water issues. Water Act 2003 and the regulations associated with the Water Framework Directive, also show that the Government is committed to progressing water legislation.

Pollution

Floods, droughts, pollution and environmental damage are critical issues for water companies. But obviously they are not just the responsibility of the water industry. Sectors such as farming and transport have major impacts on water quality. Currently these sectors are being subsidised by water customers to the tune of hundreds of millions of pounds a year. Diffuse pollution from farming means that pesticides and nutrients must be removed from drinking water. Pollution from transport and industry is also a serious threat. It is good that Defra has adopted a strategy to tackle the problem; it has issued a consultation on catchment sensitive farming and an urban issues paper is to follow.

Needs change, so should focus

In 1997 the area for action was the water industry. In 2003 things are more complex and action to protect water must also be taken in transport, farming and planning. And the actors are more complex too. In 1997 it was government that took action. In 2003 we need better co-ordination, co-operation and collaboration; it is now everyone’s responsibility to act.

Regulation now must be as streamlined and relevant as possible.

The needs have changed since the big water companies were privatised nearly fifteen years ago. Then, the public’s opinion of the industry was poor and a tight economic rein was essential. The environment cried out for an aggressive regime. The quality of tap water was still lower here than in other developed countries. Now, we have some of the best tap water in the world. Rivers and beaches have been restored. And Ofwat says the biggest efficiencies have been achieved.

New direction

There is consensus that a new direction is needed. Policy-makers, regulated organisations, environmental and consumer groups are looking for answers. There is increasing interest in the idea of sustainable regulation.

The Better Regulation Task Force is influential. Its five key principles - regulation must be proportionate, accountable, consistent, transparent, targeted - have been widely adopted. Other official bodies are involved, including the National Audit Office, the House of Lords Constitution Committee, and various House of Commons committees. They give both regulators and regulated opportunities to express their views. Then there’s competition. The Water Act 2003 clarified policy and increased the number of eligible customers. The industry is contributing to the debate led by Ofwat on how the new provisions should be implemented.

There’s also a debate going on outside government. Water UK has identified four issues that will hold up the industry’s development if they aren’t tackled. The solutions to all depend on greater sharing of interests.

The first is the old mindset based on driving efficiency and low prices by ‘sweating the assets’. In future the aim should be investing for long-term value. The second need is to replace ‘one-size-fits-all’ regulation with common aims but diverse solutions.

Third is the need to stop treating water customers as taxpayers. They shouldn’t be a convenient source of subsidy to other industries. Everyone accepts that the polluter pays principle makes sense, but it can be painful to implement. However there is progress with the government’s work on diffuse water pollution a significant step forward.

Fourth, we must look at increasing self-regulation and put more focus on outcomes than process. Nobody chooses complex and bureaucratic regulation. It just somehow appears. We’ll be working to encourage alternative approaches.

For more information please contact
Robert Weeden 020 7344 1842