PN 16/08: Ofwat plans water efficiency targets for companies
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PN 16/08

20 June 2008
Ofwat plans water efficiency targets for companies

Water companies would face targets to help customers save more than 23 million litres of water a day (Ml/d), under proposals published today by Ofwat.

George Day, Ofwat's Director of Network Regulation, said:

"We have to use water more carefully and cut waste if we are to continue to enjoy safe, reliable water supplies.

"The new approach to water efficiency targets we are proposing will be challenging for companies but help to reduce wasteful use of water. This should mean lower costs, lower customer bills and good news for the environment."

Ofwat proposes targets to run initially for five years from 2010-2015. Companies will be expected to deliver real savings by providing household and business customers with information on how to use water sensibly, and promoting the use of water saving devices. All companies would have to achieve a minimum saving, while some would aim to save more as part of their plans to make sure that supplies are able to meet both current and future demand.

The proposed minimum annual saving of 23.3 Ml/d across England and Wales represents a 40% increase in the average amount of water saved by water companies annually over the past three years, excluding supply pipe repairs and replacements.

The targets would help companies to play their part in achieving the Government's goal of reducing individual water usage to 130 litres per person per day from its current level of around 150 litres. If the proposed targets remain in place until 2030 we expect them to contribute at least half of the required savings.

Water efficiency represents part of companies' work to reduce waste. They will also need to live up to their commitments to meet their leakage targets.

Notes to Editors:

1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.
2. Ofwat's proposals are outlined in the paper, 'Future Water Efficiency Targets: A consultation', which is available on its website, www.ofwat.gov.uk
3. One of the agreed actions of the Government-led Water Saving Group is to develop water efficiency targets.
4. In August 2007 Ofwat set companies voluntary water efficiency targets for 2008-09 and 2009-10. These were outlined in the letter to companies' regulatory directors, RD 15/07. At that time Ofwat said that it would set refined targets as part of the 2009 price review (PR09).
5. Proposed water efficiency targets for water companies using property numbers provided in the 2008 June return are set out below. 1Ml/d = one million litres.
6. Media enquiries to Ofwat Press Office on: 0121 625 1442/1496/ 1416.

Proposed minimum water efficiency targets, 2010-11 to 2014-15
CompanyHousehold properties (000) Non-household properties (000) Total properties (000)Target Ml/d
2007-08 2007-08
Anglian
1,804
114
1,918
1.9
Dŵr Cymru
1,202
103
1,305
1.3
Northumbrian
1,056
59
1,115
1.1
Severn Trent
3,076
196
3,272
3.3
South West
674
72
747
0.7
Southern
945
61
1,006
1.0
Thames
3,232
216
3,448
3.4
United Utilities
2,783
172
2,955
3.0
Wessex
499
52
551
0.6
Yorkshire
1,921
130
2,051
2.1
Bournemouth & West Hampshire
177
16
193
0.2
Bristol
448
34
483
0.5
Cambridge
114
10
124
0.1
Dee Valley
108
8
116
0.1
Essex & Suffolk
699
41
740
0.7
Folkestone
67
5
72
0.1
Mid Kent
225
21
246
0.2
Portsmouth
274
20
294
0.3
South East Water
549
45
594
0.6
South Staffs
504
29
533
0.5
Sutton & East Surrey
251
15
266
0.3
Tendring Hundred
66
4
71
0.1
Three Valleys
1,179
63
1,242
1.2
Industry total
21,853
1,490
23,343
23.3


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