Urgent Call for Increased Efficiency and Sustainability in Water Management
A new report from the Environment Agency has revealed that an additional 5 billion litres of water will be needed daily by 2050 to support a growing population and ensure environmental sustainability. Alarmingly, 19% of water supplies are lost by water companies before reaching consumers, highlighting a critical area for improvement.
The report, published on Monday, 7 October, assesses the annual performance of water companies against their Water Resources Management Plans (WRMPs). These plans outline strategies to reduce leakage, implement metering, and develop new supply sources. While the report acknowledges some progress, it underscores significant shortfalls, necessitating urgent action to manage water resources effectively.
As part of its commitment to transparency, the Environment Agency has made this year’s report public to highlight the importance of these issues and to call for sustained action from water companies in executing their plans. By 2050, an additional 5 billion litres of water daily will be essential to support the economy, food production, and environmental protection.
The Environment Agency mandates water companies to produce plans ensuring secure and sustainable supplies, leading to ambitious future targets. Full implementation of these plans could enhance resilience to extreme drought, protect ecosystems, and bolster the economy.
Key Findings of the Report:
- Leakage: Despite the industry’s commitment to halving leakage by 2050 and achieving a 10% reduction since 2017-2018, losses remain alarmingly high at 19%. Thames Water and United Utilities have been identified as the worst performers. A sustained effort is critical to reduce leakage, especially with climate change increasing the risk of pipe bursts.
- Drought Preparedness: While 2023/24 saw no drought concerns due to wet weather, some companies may still lack sufficient supplies during drought conditions. Given the increasing frequency of extreme weather events, prompt measures are essential to establish new supply schemes.
- Demand Reduction: The Environment Act aims to decrease per capita water usage in England by 20% by 2037-38 compared to 2019-2020 levels. Currently, there has been a 3.6% reduction, with water metering playing a vital role in reducing household consumption. Approximately 60% of households now have water meters installed.
Statements from Leaders:
Alan Lovell, Chair of the Environment Agency, stated, “In the face of the enormous challenges regarding water resources, we must address both reducing demand and increasing supply. Although we have observed some progress, further planning and investment are required, particularly in reducing leakage. We expect water companies to expedite their efforts in enhancing efficiency and preparing for future droughts. We will collaborate closely with Ofwat and Defra to ensure water companies are held accountable for protecting our environment and securing water supplies for future generations.”
Water Minister Emma Hardy commented, “This report starkly highlights the volume of water wasted by companies across England. As the climate crisis escalates, we must repair our water infrastructure to ensure a resilient supply. We have initiated immediate actions to reform the water industry, including the introduction of the new Water (Special Measures) Bill, which will enhance regulatory powers to hold companies accountable. Furthermore, we are prioritising customers by doubling compensation for supply disruptions.”
Water company performance regarding leakage, drought preparedness, and adherence to their water resource plans are among the areas evaluated in Ofwat’s annual performance reports. Companies that fail to meet these plans may be required to refund customers through bill reductions.
The Environment Agency and Ofwat are urging water companies to allocate resources toward improving water supply resilience. Letters expressing concerns over the management of water supplies will be sent to several companies and published on Ofwat’s website.
