The
Environment Agency has today hailed Ofwat’s
water price review decision as a good deal
for water customers and the environment.
Over £4 billion
is to be invested by the water industry
in England and Wales to fund environmental
improvements. The Environment Agency has
been working closely with Ofwat and the
water companies throughout the review process
to ensure that the needs of the environment
and the customer are met.
The five year price
review by water regulator Ofwat sets out
what water companies are allowed to charge
their customers, and what services they
must provide. Water industry investment
for 2010-2015 will support improvement in
the water quality of over 3000km of rivers
and 35 coastal bathing waters, ensure a
secure and sustainable water supply, minimise
pollution incidents through sufficient investment
in maintenance, and help to prevent climate
change by cutting carbon emissions.
The Environment Agency
also called for water companies to plan
for the increased risk of flooding to their
key treatment plants due to climate change.
Ofwat has agreed that £400million
will be invested in this. Infrastructure
- such as water treatment and sewage works
- is often located by rivers and is particularly
susceptible to flooding. Many plants were
badly affected during the summer 2007 floods,
cutting water supplies and sewerage services
to thousands of homes and businesses. It
is the first time that resilience to flood
risk has been expressly considered in a
periodic review.
The Environment Agency
is also pressing water companies to look
closely at measures to improve the capacity
of sewerage and drainage systems to reduce
the frequency of surface water flooding.
During extreme rainfall flooding can be
caused by surface water overwhelming the
drains, leading to sewage backing up into
people’s homes. The Environment Agency would
still like to see improved capacity in surface
water drainage and believes that significant
future investment will be needed.
Lord Chris Smith, chairman
of the Environment Agency said:
“This price determination
by Ofwat represents a good deal for the
customer and the environment.
“Last week’s flooding
in Cumbria illustrates just how important
it is to plan for extreme flood events.
The role of water companies will become
increasingly important as climate change
brings more frequent and extreme flooding.
“Water quality in this
country has improved for the 19th consecutive
year in 2009, but we now have even more
ambitious targets to meet for rivers, lakes
and coastal waters. The water industry has
a vital role to play in helping to improve
the environment further by making sufficient
investments, and the Environment Agency
will ensure that water companies deliver
on their plans.”
Over the past two decades
the Environment Agency has overseen £20billion
of investment by the water industry to improve
water quality. This year, over 98 per cent
of bathing waters passed European standards,
and otters, salmon and other wildlife are
thriving in many rivers for the first time
since the industrial revolution.
ENDS
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Notes to editors
The Periodic Review
is a control mechanism which 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
2009 will set out the water companies’ plans
for 2010-2015.
The Environment Agency
advises on all parts of water companies’
business plans which affect our current
and future environment. The Environment
Agency’s goal is to ensure that they produce
and implement long-term plans to deliver
water and sewerage services across England
and Wales which are consistent the needs
of the environment, consumers and government.
The Environment Agency has a duty to regulate
some areas, and to advise the Government
and Ofwat on others. As well as working
with the water companies themselves, the
Environment Agency works in close collaboration
with a number of other government and non-government
organisations, to deliver a better deal
for customers and the environment.
The Environment Agency’s
priorities for PR09 fall into four principal
areas: ensuring a resilient water and sewerage
infrastructure; delivery of the National
Environment Programme; the right balance
of water supply and demand; and climate
change.
