The Water Act 2003 introduced competition in water supply for large users. Licensed water suppliers are now able to compete with statutory water companies to supply customers with a consumption of at least 50 million litres per year. The Act provides a mechanism to alter the customer consumption threshold. A review of the threshold will take place in 2008 to consider the impact of the regime on drinking water quality, environmental protection, customer service and prices for eligible and other customers.
Leakage targets are set and monitored by the Economic Regulator, Ofwat. They require water companies to compare the cost of reducing leakage and the value of the water saved, including any associated environmental and social costs and benefits.
In March 2003, the tripartite group of Defra, the Environment Agency and Ofwat published the report, “Future approaches to leakage target setting for water companies in England and Wales”. This sets out the best practice principles in the economic level of leakage calculation. Ofwat assesses the water companies’ economic levels of leakage analyses against these principles.
As well as analysing the companies’ economic assessments, Ofwat also monitors their annual performance in managing leakage. This is done through an annual submission to Ofwat known as the June Return. Through this return the companies provide a full reconciliation of how all treated water put into supply is used, including the volume lost to leakage.
Water companies have powers under section 75 of the Water Industry Act 1991 and within the Water Supply (Water Fittings) Regulations 1999 to take action if they consider water supplied by the company is being wasted or is likely to be wasted. There are no current proposals for further such powers.
(2) what estimate his Department has made of the cost of moving water between water authorities.
The concept of a national water grid has been raised many times in the last 30 years and was has never been considered remotely viable. It was most recently discussed at the Secretary of State's meeting on 1 June with representatives of water companies and the water industry regulators. It was rejected by all those present on the grounds of its disproportionate and unjustifiable cost, both for the environment and for water bills, compared with the benefits such a grid could deliver. This stance was informed by a recent desk study undertaken by the Environment Agency, which will be published later this summer.
A good deal of water is already transferred within water companies’ areas of operation to give individual companies greater flexibility to meet local shortages. Longer distance links have long been established between, for example, Wales and the West Midlands and South East Lancashire, the Lake District and Lancashire, and from the Fenland watercourses to Essex.
The Environment Agency, in consultation with Ofwat, is able to propose to a water company that it enters into a bulk supply agreement with another water company, where it is necessary to secure the proper use of water resources.
The Water Services Regulation Authority (publicly known as Ofwat) publish data annually on the amount of water supplied by water companies.
Maximum usable water volumes are best indicated by the distribution input (total volume of drinking water put into the supply system per day). Actual usable water volumes are best indicated by the water delivered (total volume of drinking water delivered per day). Figures for each water supply company region in each financial year since 1997-98, in megalitres per day, were reported as follows:
1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 Anglian Water delivered 1027 1002 1000 987 986 1000 1001 990 Distribution input 1200 1146 1140 1134 1159 1150 1174 1163 Dwr Cymru Water delivered 715 695 681 682 674 676 670 667 Distribution input 987 949 930 899 894 883 876 869 United Utilities Water delivered 1610 1560 1548 1554 1559 1573 1599 1551 Distribution input 2083 1977 1947 1935 1933 1952 1984 1953 Northumbrian North Water delivered 657 654 634 634 631 618 609 599 Distribution input 789 111 758 750 754 736 732 719 Northumbrian South Water delivered 437 431 432 421 431 427 439 425 Distribution input 492 480 478 466 476 465 481 464 Severn Trent Water delivered 1632 1632 1645 1634 1637 1612 1655 1626 Distribution input 1918 1869 1878 1868 1870 1929 1967 1925 South West Water delivered 374 366 364 356 372 375 390 394 Distribution input 445 434 431 429 445 447 459 456 Southern Water delivered 531 520 518 514 528 524 527 513 Distribution input 603 588 585 578 598 595 599 586 Thames Water delivered 1982 1892 2049 2089 2107 2141 2179 2140 Distribution input 2665 2481 2553 2600 2765 2842 2874 2809 Wessex Water delivered 310 304 304 302 308 306 318 313 Distribution input 402 387 376 373 374 368 379 372 Yorkshire Water delivered 1042 1013 1031 1032 1070 1059 1061 1055 Distribution input 1338 1285 1283 1274 1307 1299 1297 1287 Bournemouth and W. Hampshire Water delivered 139 134 141 138 138 141 148 147 Distribution input 158 154 158 154 154 158 165 164 Bristol Water delivered 263 255 250 248 252 246 247 241 Distribution input 308 301 292 289 297 292 293 287 Cambridge Water delivered 63 61 61 61 62 63 65 65 Distribution input 73 71 70 71 72 73 75 75 Dee Valley Water delivered 63 63 63 62 62 63 63 61 Distribution input 71 71 71 70 69 70 69 68 Folkestone and Dover Water delivered 46 43 43 43 45 44 44 40 Distribution input 52 49 49 49 51 50 50 46 Mid Kent Water delivered 140 139 142 138 139 138 145 143 Distribution input 164 159 161 156 158 157 166 163 Portsmouth Water delivered 153 151 158 154 158 156 165 159 Distribution input 177 174 181 176 179 177 186 180 South East Water delivered 310 306 316 315 320 322 343 339 Distribution input 394 382 387 378 375 376 394 391 South Staffs Water delivered 285 276 275 278 283 281 287 279 Distribution input 344 331 330 329 334 331 338 332 Sutton and East Surrey Water delivered 141 137 139 138 145 145 154 146 Distribution input 157 152 154 153 160 160 169 161 Tendring Hundred Water delivered 27 25 25 25 25 26 26 26 Distribution input 32 30 30 30 30 30 31 30 Three Valleys Water delivered 714 705 721 738 768 765 801 780 Distribution input 832 811 816 829 871 864 899 877