Utility Week

10 | 7TH - 13TH DECEMBER 2018 | UTILITY WEEK Policy & Regulation Analysis R eservoirs are beautiful places to relax or go for a walk, but do we really need to build new ones for water security? This is a question that divides water industry opinion. In a speech to Department for Environ- ment, Food and Rural Affairs stakeholders on 26 November, environment secretary Michael Gove announced government plans to accelerate the construction of new infra- structure – including reservoirs. "In part because of company behaviour, in part because of regulatory barriers, we have not built any major new reservoirs in this coun- try since the industry was privatised," he said, insisting climate change and a rising population meant new water supply infra- structure "will be required". Back in March, the chairman of the National Infrastructure Commission (NIC), John Armitt, told the water sector the cost of building new reservoirs would be "peanuts" compared with the potential economic dam- age a drought would cause – a point he reit- erated at Utility Week Congress in October. Speaking to Utility Week, NIC commis- sioner Dame Kate Barker says: "We need more resilient water supplies. To do that we need to reduce demand and tackle leakages, but also to support new infrastructure. That will include new reservoirs because they are good value for collecting large volumes, but also a new network to transfer water from areas of surplus to those in need." Meanwhile, Ofwat – currently chest-deep in its initial assessment of companies' PR19 business plans – insists that each water company has a duty to ensure the resilience of its water supplies and water resource stor- age options, and reservoirs are an important part of this. "As we pore over business plans for PR19, we'll expect to see a strong focus on resilience from all companies," says a spokesperson. Resilience is one of the four key pillars of PR19, along with great customer service, affordable bills and innovation. New reservoirs What do water companies think? Some have new reservoirs in the pipeline, insisting they will be needed to ward off the threat of drought. Thames Water included, in its latest Water Resource Management Plan (WRMP), updated proposals to build a new reservoir in Abingdon, Oxfordshire – in partnership with Affinity Water. Plans for a reservoir south of Abingdon have been on the cards since the 1970s. Thames' original plan was rejected by the government in 2011 on the grounds that there was "no immediate need". The company insists the reservoir will help tackle issues caused by huge population growth and climate change, and even has the potential to support the wider water-stressed southeast region. It revived plans for the new reservoir as part of its WRMP19. If the project is approved, Thames aims to begin construc- tion in 2025, with filling completed in 2037. The reservoir would then be able to supply water to the company's region, including the densely populated city of London. Strategic planning and investment direc- tor Sarah McMath says: "The recent hot, dry summer has highlighted how precious a resource water is and how vital it is we plan for the future, not only because of climate change but also population growth. The reservoir is planned to supply large parts of the South East during times of drought and become a vital part of the region's water sup- ply network. "It will also help maintain healthy levels in the Thames and take some of the pressure off environmentally sensitive chalk streams, which are home to an abundance of wildlife, while serving as an open space for people to enjoy. However, we appreciate any major infrastructure project will divide opinion and this is why we've been asking for feed- back on our plan from as many people as possible." A consultation on the latest dra of the plan closed on 28 November. The reservoir is not the only way Thames is trying to ease the pressure on its water supply. McMath adds: "We have to act now to reduce demand for water by fixing leaks, continuing with the rollout of water meters and raising awareness with customers, as well as investing record amounts in our infrastructure. All of these need to work in tandem to make sure there's enough water for everyone in years to come, while mini- mising our impact on the environment." Portsmouth Water is another company championing the construction of a new res- ervoir in its area. The company has plans to build a reservoir in Havant Thicket, East Hampshire – with a target date for delivery of 2029. The company insists it is needed, aer neighbouring company Southern asked for an additional bulk supply into the South- ampton area of Hampshire as part of a 2017 review of its WRMP. If the proposal for the Havant Thicket res- ervoir is approved, winter rainwater emerg- ing at the Havant and Bedhampton Springs would be pumped into it via a new pipeline. The reservoir would also provide increased resilience in supply for Portsmouth Water customers, as well as new leisure and educa- tion opportunities for local communities. Not all reservoirs are above ground. Sev- ern Trent is investing £5 million to build a new underground service reservoir in the Midlands – near Diamond Avenue in Kirkby- in-Ashfield. This will replace the existing, but ageing, reservoir in the same area. "As the local population continues to grow, we decided that now was the right time to upgrade the Diamond Avenue site to provide a far more resilient water supply that we can easily maintain. It's all about us mak- ing sure our supply is fit for the future," says Severn Trent's Richard Evans – who is man- aging the project. The water firm also, this year, completed the £40 million expansion of a reservoir at Ambergate in Derbyshire, which provides fresh water to parts of the East Midlands. Severn Trent group chief commercial officer Helen Miles said at the time that the work – which involved modernising the site and increasing the capacity of the reservoir – would "make sure customers can keep using fresh water in so many wonderful ways for many years to come". Anglian Water is another company con- Do we need new reservoirs? The government insists more reservoirs must be built to offset the effects of climate change, but are they really needed? Lois Vallely investigates.

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