Utility Week

6 | 12th - 18th MAY 2017 | UtILItY WEEK People & Opinion The value of water As we enter an era of profound change, policymakers and the public must better understand the importance of water to us all. Chief executive's view Ian McAulay, chief executive, Southern Water W ater plays a unique role in all our lives. It is critical to keeping our communities healthy, our vil- lages, towns and cities running, and our economies growing. The water sector has served customers in the UK consistently and reliably for many years. It has quietly met customer needs and environmental demands and challenges well, albeit by relying on what are mostly con- ventional approaches. However, as we enter the PR19 planning cycle, I believe our world of water is at a point of inflection. Water scarcity is becoming more common, the fre- quency and intensity of extreme weather events is increasing, our population is expanding and urbanising, environmen- tal and economic demands and challenges are growing, custom- ers' needs and preferences are changing, and technology is becoming ever-more available, capable and affordable. The combination of these fac- tors means the previous thinking and convention upon which we have relied must now be inte- grated with substantially more innovation and change. In his keynote speech to the Water UK City Conference in March, Ofwat chairman Jon- son Cox challenged the sector to "break all known frontiers" while maintaining affordability for customers. That's a bold challenge that highlights both opportunity and the need to implement a step- change shi‰ in the strategic direction of the industry for the first time in many years. We need to create new approaches to managing water, new ways of thinking and more innovative ways of implement- ing. The world is changing faster than at any time in history and will continue to do so. Looking forward 25 or 50 years is a very different proposition now than it was in earlier AMP periods. It's important to remember that we start from a sector posi- tion of having well-established methodologies, extensive asset bases and a regulatory approach that has worked well for many years. That has great value that should not be lost. The time is right though to adapt and inte- grate our past into a future in which innovation and technol- ogy are harnessed to create an environment where the optimum value of water is realised. Water in its many forms and uses, including our sector's infrastructure and services, is essential. However, for a variety of reasons the value of water is not always or consistently recog- nised in the public domain. It is obvious that in times of drought or flood, when there is too little or too much water – or in water pollution events – the value of water is considered. That does need to change. In the water sector we need to work in our communities in a clear, creative and collaborative way to raise awareness of the value of water and the o‰en-hidden chal- lenges that can threaten supply or affect our ability to provide these critical services. We also need to think and work outside our conventional "boundaries" whether these be defined or self-imposed. There are, for example, oppor- tunities to use systems think- ing to manage supplies and demand more holistically, and to connect other sectors in new approaches. In that regard, the water-energy-agri nexus affords much scope for new thinking and approaches. In this way, we can support widespread changes in how people use and value water; for example, being more water effi- cient, more knowledgeable of the impact of water in the envi- ronment, or more aware of the importance of water to deliver economic growth potential. Working together, we can bet- ter protect our network as well as the rivers, watercourses and bathing waters that are the life- blood of our local communities. To read the full column, visit: http://bit.ly/2pHVZoi "A growing number of emerging and challenger suppliers have significant price differentials across their tariff portfolio and a cap would simply push many cheaper tariffs out of the market, resulting in higher prices." Stephen Murray, energy expert, Money Super Market

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