Utility Week

UTILITY WEEK | 10TH - 16TH MAY 2019 | 7 News In recent years the sector has found itself under increased scrutiny and has been chal- lenged to prove it is doing the right things for customers and the environment. On the political front, Labour has lined up water as the rst industry it would bring back into public ownership should the party return to power. The water sector says that to meet the long-term challenges it faces and to shape a positive future for customers, it wants to develop a clear, common vision which all parties in the industry will work to achieve. It aims to restore public trust by "acting in the right way". The move has been co-ordinated by regu- lators, government, industry and the con- sumer body. Ofwat chief executive Rachel Fletcher said: "The challenges the sector faces are profound. But if we work together and show real ambition, we can make a meaningful and lasting di- erence to customers, the envi- ronment and society and, in doing so, make our children's generation proud and become an industry others look to for inspiration. I'm looking forward to all parties joining forces so we can get cracking to agree and deliver a better future." The water sector is inviting feedback to its draƒ vision to help it shape the new vision, which it aims to unveil in the autumn. Comment Making water an industry tobe proud of Ofwat's chief executive, Rachel Fletcher writes exclusively for Utility Week. E veryone reading this will know that over the past few years the water sec- tor has come in for a lot of scrutiny, whether for boardroom practices, customer service or ire-inducing issues like leakage. On too many of these, for too long, some in the sector have been in the wrong place. This scrutiny has been necessary to drive change, but it has also overshadowed much that is great about the industry: its public service ethos and the steps companies have made to improve the environment while reducing real bills, for example. There is still work to do to address concerns, and to create a positive future we must look forward. To that end, we have published an emerging new vision for the sector. This sets out the aspirations of those in the sector and what we think is needed to become an industry the country can be proud of. All parts of the sector – regulators, governments, consumer groups and the companies themselves – have been collabo- rating to identify the themes of a new vision. And this itself is a symbol of our collective willingness to work together in the interests of customers, society and environment. By creating a clear, long-term purpose, the sector is setting itself on a path to deliver the right things in the right way for customers and the environment. And it is very much needed. The challenges before us are profound: climate change; population growth; and greater customer expectations are just the start of it. Following discussion with customers and stakeholders about what our collective vision might be, three themes have emerged. The rst is the importance of the sector delivering everyday excellence. Aƒ er all, these are essential services, and customers' growing and changing demands should beˆmet. The second is long-term stewardship. The industry owns long-lived assets and has an important role in protecting and improving the environment and the water resources on which we all depend. Third is the focus on adding value. That means value for money to customers, but also it recognises the value companies can provide to communities and the environ- ment as they carry out the job of providing water and waste services. As a step towards this, we welcome Water UK's public inter- est commitment as a demonstration of the industry's commitment. The sector will consider these three themes and explore how it can build them into the goals for us to all work towards and the motivations to help us get there. And we welcome all input, ideas and inspiration as we work this through. And while we need that common goal, we also need each organisation to play their part. To that end, Ofwat is inviting further conversation about its refreshed strategic direction from 2020. We expect to build on Ofwat's strengths but look to make three important shiƒ s. First is a stronger focus on creating a better future, by embracing a longer-term perspective. We are considering setting long- term targets; planning for sustainable future water resources; and ensuring long-term operational resilience. Second, we want to be more proactive in driving transformational change to provide resilient services that are a- ordable while improving the environment. In doing that, we want to help by setting a regulatory envi- ronment that fosters the adoption of innova- tion, encourages a- ordable solutions for the environment, promotes mature relationships between companies and customers, and sees information turned into insight for Ofwat and the industry. And nally, we want to encourage private enterprises to deliver public value. That means ensuring value for customers, communities and the environment, and looking to companies to create social and environmental value through their approach to delivering core services for customers. That might mean exploring how catchment management could improve river quality while driving down cost of water treatment, or how companies can help the economy in local deprived communities by targeting training and job opportunities. Across the water sector we are looking forward. We invite everyone interested to join us and help to shape a brighter future.

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