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Ofwat plans water efficiency targets for companies

Ofwat plans water efficiency targets for companies

WATER SERVICES REGULATION AUTHORITY News Release (PN 16/08) issued by The Government News Network on 20 June 2008

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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