Utility Week

14 | 13TH - 19TH SEPTEMBER 2019 | UTILITY WEEK Utility of the Future: climate change Water resilience metering beyond water-stressed areas by the 2030s and amends regulations to require all companies to consider the systematic roll out of smart meters before the end of 2019. Tom Andrewartha, director of strategy and policy at Waterwise, says: "It is only when people have an understanding of how much water they use and how they use it that we will see a step change in people's water-using behaviour. Smart metering can help unlock that challenge." Further gains could be achieved if mandatory water labelling on all appliances is introduced, he adds: "Our research with water companies, Defra and the Environment Agency showed that a man- datory water label, linked to both water fittings, and building regulations, could possibly result in a PCC reduction of 31 litres per property per day by 2050. That's one of the most cost-effective actions the government could take and something that all water companies are getting behind." With multiple options for building water resil- ience on the table, thoughts must inevitably turn to the cost of infrastructure investment and upgrades required to build resilience. All new infrastructure measures outlined in the NIC plan are expected to be delivered by water companies through the regu- latory process and Water Resource Management Plans, without extra funding from government. According to its calculations, the delivery of additional infrastructure required to build resil- ience by 2050 would have a reasonably small impact on consumers' bills, costing about £10 a year by 2050. However, the need for regional water transfer schemes may introduce additional challenges, says WRSE's Bishop. "This relates to the alloca- tion of costs and risks associated with schemes between companies," he says. "It is possible that future schemes may incorporate benefits for other sectors, such as agriculture, private industry, etc. This will need to be carefully managed to ensure no inappropriate cross-subsidy between those who pay and those who receive benefit." Success will also hinge on support for the NIC's plan, according to Graham, because the govern- ment has dragged its feet on measures designed to make the introduction of metering easier. "We had hoped they would have moved faster, and the consultation [currently underway] is quite neutral," he says. "It doesn't say: 'We think this should happen'. It is more like: 'Here's an interest- ing idea, tell us about it.' We aren't worried that this agenda is being ignored, we would just like some of the initial areas to be picked up." Others point to a lack of scope in the NIC's vision of resilience. "It does not go far enough and see the need for water services not just as infrastructure but as part of the natural water cycle," says Nick Voulvoulis, professor of Environmental Technology at the Centre for Environmental Policy. "The water industry ultimately takes the role of guardian/ manager of a sustainable water cycle. While the plan recognises the need for a more comprehensive perspective – and that companies need to work better with each other and wider stakeholders to plan for the long term – it does not propose any mechanisms or policy changes that will make this happen." As the clock ticks down, and global tempera- tures continue to rise, a concerted effort will be required to keep the water flowing in this green and pleasant land. Stephen Cousins is a freelance journalist continued from previous page "It does not go far enough and see the need for water services not just as infrastructure but as part of the natural water cycle." NICK VOULVOULIS, PROFESSOR OF ENVIRONMENTAL TECHNOLOGY, CENTRE FOR ENVIRONMENTAL POLICY COST DIFFERENCES COMPARISON OF THE COSTS OF ACHIEVING RESILIENCE TO A 0.5% DROUGHT INCLUDING DIFFERENT LEAKAGE REDUCTION POLICIES Low leakage costs High leakage costs £30 £20 £10 £0 Business as usual (15% leakage reduction) 40% leakage reduction 50% leakage reduction Source: NIC calculations and analysis, using input from infrastructure Transitions Research Consortium and Regulatory Economics £ billion £ billion £30 £20 £10 £0 Business as usual (15% leakage reduction) 40% leakage reduction 50% leakage reduction "I'm confident the citizens' assembly will move things faster than the politicians will. Whether it moves it fast enough, nobody knows, but I'm very confident that it will move things faster." STUART SAMPSON, WATER MANAGER, ENVIRONMENT AGENCY

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