Transcript Sustainable water

Sustainable water – meeting society’s needs
Are regulators agents of social change, and what are the
implications of the equality and human rights agenda?
Sue Cox
15 December 2009
Protecting consumers, promoting value, safeguarding the future
Who we are
Economic regulator of the water and sewerage sectors in
England and Wales
Small non-ministerial government department set up
when the companies were privatised
Independent of government and the water companies,
but accountable to Parliament and the Welsh Assembly
Government
Our aim: protect consumers, promote value and
safeguard the future
Protecting consumers, promoting value, safeguarding the future
Future challenges
Climate change
Population growth
Customer expectations
Protecting consumers, promoting value, safeguarding the future
Water stress
Areas of relative water
stress (EA and Defra)
Growing UK population – predicted to
reach 72 million by 2033 and become
biggest in EU by 2050
Much growth will take place in south-east –
already the driest part
Climate change could alter seasonal
reliability of weather
Protecting consumers, promoting value, safeguarding the future
The three key aspects of sustainable development
Social
Sustainable
Environment
Economic
Protecting consumers, promoting value, safeguarding the future
Ofwat’s approach
1. A safe and reliable water and sewerage service
for consumers that minimises the impact on the
environment now and in the future
2. Consumers continue to get a fair deal and
receive a level of service that consistently meets
their needs
3. Financially robust sectors that are able to meet
consumer’s needs a fair cost, into the future
4. Companies that remain accountable to their
consumers
5. Using the best available information to support
decision making
Protecting consumers, promoting value, safeguarding the future
What we are doing
Harnessing market forces and valuing water
Making monopolies improve
Projects looking at:
Markets and customer choice
Sustainable drainage
Metering and charging
Best practice regulation
Protecting consumers, promoting value, safeguarding the future
Issues to consider
Environmental improvement
Who pays and how much?
Carbon impacts
Sustainable consumption
Price signals v affordability
Customer choice v protection for the vulnerable
Role of regulator
Strategic/political decisions or advice and implementation?
“I welcome the publication of Anna Walker’s excellent report. We will
consider her recommendations carefully ahead of a full public
consultation. Meanwhile, in line with the specific recommendations for the
South West Water area, we will ask Ofwat to consider the options for dealing
with the high water bills there which have resulted from the original
privatisation, and to advise Ministers accordingly.”
Huw Irranca-Davies, Environment Minister
Protecting consumers, promoting value, safeguarding the future