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Approach to assessing draft water resource management plans
Each company has published its consultation on its draft water resources management plan during April and May of 2008. We will assess each company's plan to ensure that it:
- demonstrates that the proposed investment represents the best value optimal solution (taking a twin track approach considering leakage control, tariffs, metering and water efficiency as well as resource development) for balancing supply and demand using the methodology set out in 'The Economics of Balancing Supply and Demand' (UKWIR/Environment Agency, 2002);
- takes proper account of the company's customers' preferences for maintaining or improving service levels in terms of the frequency and duration of restrictions to supplies that underpin its planning assumptions;
- takes account of the impact of climate change on the supply of and demand for water, supporting its conclusions with robust evidence;
- adopts regionally optimal solutions determined, for example, through the work carried out by the Water Resources in the South East Group or explains, where appropriate, why the proposed solutions differ; and
- adequately explains how the company has chosen the level of risk assumed in its planning, for example the assumptions and reasoning underpinning its target headroom allowance.
You can follow the links below to our representations on each company's plan. Our Chief Executive has also written to the Environment Minister, Phil Woolas with an overview of the main themes to emerge from the plans.
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