A changing climate presents both challenges and opportunities for the sectors. For example, changing rainfall patterns will affect the way water resources are collected and stored. We have recently set out our position on climate change in “Preparing for the future – Ofwat’s climate change policy statement”. In it we outline how the water and sewerage sectors are affected by climate change, how we are responding to the challenges and ways in which we expect companies to respond.

We want water and sewerage sectors that are sustainable in all respects. Environmental sustainability in particular demands an effective response to climate change. The twin challenges of climate change adaptation and mitigation need to be addressed by the water and sewerage sectors in a way which offers value and protection to consumers both now and in the future.

Adapting to climate change will require the sectors to consider all the potential impacts on service and plan ahead accordingly. This will range from increasing the resilience of water supply networks, to understanding the subtle day-to-day impacts on performance a changing climate may bring. We expect the water and sewerage sectors to adapt in a phased, responsible and appropriate manner. This means that adaptation plans must be based on sound science and evidence.

Climate change mitigation is a key issue for the water and sewerage sectors because they are energy intensive – their operational emissions account for around 1% of the UK’s total. In addition, as asset intensive sectors they have large embedded carbon which is associated with construction and raw materials. We expect companies to understand their total level of emissions and play an appropriate part in the UK’s effort to reduce them.

We continue to review and update our climate change policies as the scientific and political frameworks develop. We will work across government, with other regulators and with our stakeholders to deliver effective climate change policies. We will work to make sure that we act in the best interests of consumers, driving high quality and sustainable, water and sewerage services.

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