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Water Services

Volume 447: debated on Friday 16 June 2006

To ask the Secretary of State for Environment, Food and Rural Affairs what steps the Government are taking to generate competition in water services. (76633)

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.

To ask the Secretary of State for Environment, Food and Rural Affairs who is responsible for (a) setting leak reduction targets and (b) monitoring performance against those targets in the south east; and what assessment his Department has undertaken of the financial and technical tests used to monitor the performance of water companies. (76634)

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.

To ask the Secretary of State for Environment, Food and Rural Affairs what powers water companies have to take action against those people who are observed to be wasting water; and whether there are proposals for further such powers. (76743)

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.

To ask the Secretary of State for Environment, Food and Rural Affairs whether provision has been made for transporting excess water in the North to the South and South East. (75373)

To ask the Secretary of State for Environment, Food and Rural Affairs (1) what research his Department has undertaken into the costs of (a) a national grid for water and (b) moving water through river systems; (75357)

(2) what estimate his Department has made of the cost of moving water between water authorities.

To ask the Secretary of State for Environment, Food and Rural Affairs what recent estimate he has made of the cost of establishing a national water grid. (75856)

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.

To ask the Secretary of State for Environment, Food and Rural Affairs what the (a) maximum usable water volume and (b) actual usable volume for water in each water supply company region was in each financial year since 1997. (76453)

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