Salmon and Trout Association: Periodic Water Price Review (PRO9)

Ofwat is responsible for regulating water company charges to customers for water supply and treatment, in England and Wales. Ofwat reviews the pricing every five years, in a process known as the Periodic Review. This sets limits to the investment allowed for programmes to improve water quality, treatment and supply, in order to protect customers. The next Periodic Review, PR09, is due for completion in November 2009. This will set the price limit for the period 2010 to 2015.

The S&TA CEO invited the Environment Agency (EA) Acting Head of Operations, David Jordon, on to the river in the Wessex region in October 2008 to highlight S&TA’s concerns with the lack of water companies’ environmental programmes within the PR09 process. We would like to see the PR09 process deliver on;

Unsustainable abstractions

Action is required now to remove unsustainable abstractions, in order to meet the ecological objectives of the Water Framework Directive (see: WFD). Abstraction licenses affecting protected areas, such as Special Areas of Conservation (SACs), Special Protection Areas (SPAs) and Sites of Special Scientific Interest (SSSIs), must be reviewed and revoked if causing ecological damage. The EA reported work on the River Itchen correlating water flow with invertebrate numbers and, as a result, has recommended significant abstraction license reduction to protect ecological status. Compensation will be required, and the only logical way of achieving the necessary funds will be through the PR09 water pricing round.

Tackling water quality issues at source through land management

Action to encourage Water Companies to move away from ‘end of pipe’ solutions, to more sustainable landscape based management. Landscape based projects have the ability to deliver many environmental targets for biodiversity, whilst improving and protecting water quality from source. This type of management would also be cost effective to the customer in the long term, and would help Water Companies achieve carbon reduction targets, by reducing the need for expensive and energy-consuming remedy treatments. In PR04 ‘end of pipe’ treatments removing agricultural pollutants received £500 million of investment, and since 1989 Water Companies estimate £1 billion has been spent removing pesticides. Land management solutions, in the long term, will decrease these costs, by improving raw water quality in England and Wales.

An example of this type of project from PR04 was United Utilises Sustainable Catchment Management Programme (SCaMP), which aimed to bring 20,000 hectares of land within the Forest of Bowland and Peak District, back into favourable condition- to improve raw water quality, whilst improving biodiversity. Water customers’ money is paying for large-scale capital works, such as restoring large areas of blanket bogs, as well as improving local farm infrastructure and waste facilities. Agri-environment schemes are also providing funding for changes to land management (see: Agricultural Policy).

PR09 presents a great opportunity to apply the SCaMP ‘model’ to any catchment where land management is impacting on raw water quality.

Water demand

Reducing water demand is paramount to addressing unsustainable abstractions – from 160/180 litres per head per day at present to 120 litres. Companies should invest in large-scale water efficiency projects, such as toilet cistern replacement and effluent re-use schemes.

Consultation Response

S&TA. (2008). Defra; Statutory Social and Environmental Guidance to Ofwat.
S&TA. (2008). All Party Parliamentary Water Group Inquiry; Inquiry on the Future of the UK Water Sector