MoreThanWaste.com - Public to have a say in water company plans (31/03/2007)

Customers will have a greater say in the long term plans of water companies thanks to a new law that came into effect this weekend.

Since 1999 companies have prepared 25 year resource management plans on a voluntary basis and shared these with the Government and regulators. On 1 April 2007 these plans become compulsory under changes to the Water Industry Act 1991. Now for the first time they will be subject to public consultation before they are finalised.

Environment Minister Ian Pearson said:

"It is right that customers should have a say in how water resources are managed in their area, which is why I am pleased the changes we introduced in the Water Act now mean the public have to be consulted before plans are finalised.

"The plans will describe how each company aims to secure a sustainable supply-demand balance for the public water supply over the next 25 years. It is essential that this includes an appraisal of the major challenges ahead from climate change, population growth and housing demand.

"We anticipate that the first public consultations will take place around April 2008, and that final plans will be published between July and August 2009."

The water resource management plans are expected to consider the cost and benefits of a range of options, from demand-side management such as the use of new technologies and controlling leakage, to the possible development of new resources such as reservoirs. They will also have to justify the companies' preferred option choices.

The plans will be reviewed annually by the water companies and updated every 5 years. If necessary the Secretary of State can direct water companies to prepare a revised plan before then. They will also help inform the business case for future price limits to be considered by Ofwat at the next Periodic Review in 2009.

A consultation launched on 30 January includes the proposal that companies in areas of serious water stress incorporate in their 25 year plans an assessment of the case for compulsory metering. The deadline for responses to that consultation is 24 April.

Background

1. The obligation for water undertakers to prepare and maintain a water resources management plan arises under section 37A(1) of the Water Industry Act 1991 (inserted by section 62 of the Water Act 2003).

2. The Water Resources Management Plan Regulations 2007 sets out the steps that a statutory water undertaker must follow with respect to publication and consultation of a draft water resources management plan, and the publication of its final water resources management plan. The Regulations are made jointly for England and Wales to ensure a consistent approach is applied in both countries, and in particular to those water companies that operate in both England and Wales.

3. Detailed guidance on the structure and content of the plans has been prepared by the Environment Agency and is published at http://www.environment-agency.gov.uk

4. The water metering consultation can be viewed at:
http://www.defra.gov.uk/corporate/consult/naturalenvironment.htm

5. The Environment Agency's consultation on defining areas of water stress is published at http://www.environment-agency.gov.uk


	Public to have a say in water company plans (31/03/2007) Customers will have a greater say in the long term plans of water companies thanks to a new law that came into effect this weekend. Since 1999 companies have prepared 25 year resource management plans on a voluntary basis and shared these with the Government and regulators. On 1 April 2007 these plans become compulsory under changes to the Water Industry Act 1991. Now for the first time they will be subject to public consultation before they are finalised. Environment Minister Ian Pearson said: "It is right that customers should have a say in how water resources are managed in their area, which is why I am pleased the changes we introduced in the Water Act now mean the public have to be consulted before plans are finalised. "The plans will describe how each company aims to secure a sustainable supply-demand balance for the public water supply over the next 25 years. It is essential that this includes an appraisal of the major challenges ahead from climate change, population growth and housing demand. "We anticipate that the first public consultations will take place around April 2008, and that final plans will be published between July and August 2009." The water resource management plans are expected to consider the cost and benefits of a range of options, from demand-side management such as the use of new technologies and controlling leakage, to the possible development of new resources such as reservoirs. They will also have to justify the companies' preferred option choices. The plans will be reviewed annually by the water companies and updated every 5 years. If necessary the Secretary of State can direct water companies to prepare a revised plan before then. They will also help inform the business case for future price limits to be considered by Ofwat at the next Periodic Review in 2009. A consultation launched on 30 January includes the proposal that companies in areas of serious water stress incorporate in their 25 year plans an assessment of the case for compulsory metering. The deadline for responses to that consultation is 24 April. Background 1. The obligation for water undertakers to prepare and maintain a water resources management plan arises under section 37A(1) of the Water Industry Act 1991 (inserted by section 62 of the Water Act 2003). 2. The Water Resources Management Plan Regulations 2007 sets out the steps that a statutory water undertaker must follow with respect to publication and consultation of a draft water resources management plan, and the publication of its final water resources management plan. The Regulations are made jointly for England and Wales to ensure a consistent approach is applied in both countries, and in particular to those water companies that operate in both England and Wales. 3. Detailed guidance on the structure and content of the plans has been prepared by the Environment Agency and is published at http://www.environment-agency.gov.uk 4. The water metering consultation can be viewed at: http://www.defra.gov.uk/corporate/consult/naturalenvironment.htm 5. The Environment Agency's consultation on defining areas of water stress is published at http://www.environment-agency.gov.uk [Source: Defra News Crown © 2007]