WIREDGOV

Water companies need to invest now to tackle leaks and prevent sewers overflowing during heavy rain, Environment Agency Chairman Lord Chris Smith said yesterday. Speaking at the Institute of Water’s annual conference, Lord Smith will acknowledge that water companies have made significant steps forward in environmental protection, leading to improvements in water quality in rivers and the sea, as well reducing leakage.

But he will stress that the industry 'could and should do more' to ensure water supplies are secure in the face of a changing climate and a growing population.

Currently, up to 20 per cent of water is lost through leaks from water companies’ own networks and customer supply pipes. Sewer discharges after heavy rain are still one of the major reasons for water quality failures at beaches in England. Currently, two thirds of sewers carry both sewage and rainwater and intense periods of heavy rain – such as we experienced last year – can make sewers overflow, causing pollution and flooding people’s homes and businesses.

This year, through Ofwat’s periodic review process, water companies must set out their plans for investment in infrastructure and the environment over the next five years, as well as what they will charge their customers.

One in four days were in drought

Lord Smith will say: 'Clean, healthy and readily available water is essential for people’s health and wellbeing as well as for economic growth.

'But a changing climate will reduce the availability of water, and population growth increase demand for it. Water companies need to make better use of their resources by sharing water within their networks and with neighbouring companies. They need to help their customers be more water efficient – but they must lead by example by reducing leakage further.'

'2012, with its drought and floods, put the resilience of the water network into sharp focus. One in every five days saw flooding in 2012, but one in four days were in drought, including hosepipe bans affecting over 20 million people.

'Water companies have an opportunity this year to make big, long term improvements to their infrastructure through the periodic review process, and ensure the water industry in this country is fit for the future.'

Ofwat's Periodic Review

Ofwat’s Periodic Review ensures that investments by the water and sewerage industry, and the charges made to cover them, represent the best value. All water companies across England and Wales draw up business plans which outline what they will invest in the environment, infrastructure, a safe and secure water supply and future planning over a five-year period. They also set out what they will charge consumers and businesses for water and sewerage in order to make these investments. The plans have to be agreed by Ofwat, the water industry regulator, whose role it is to ensure that consumers receive value for money. The Periodic Review 2014 will set out the water companies’ plans for 2014-2019.