Prioritisation of water efficiency and smart metering called for

Water efficiency and smart metering must not be squeezed out of business plans as the sector faces multiple challenges for the next investment period, the managing director of Waterwise has warned.

Nicci Russell said water efficiency must be given as much importance as supply within investment planning to ensure targets to drive down demand are met.

Smart metering is more widespread, as most companies have set out smart meter rollouts for the coming asset management periods (AMP8 and AMP9), she said.

However, despite strategic narrative from Ofwat, funding for water efficiency and smart metering often “gets squeezed in final determinations”, Russell said at the annual Waterwise conference.

She noted there have been key progress points made such as recent policy developments around sustainable drainage, setting targets for demand reduction and water labelling. However she challenged the level of ambition to achieve demand targets and improve efficiency.

In December, the Department for environment, food and rural affairs set a demand reduction target of 20% of per capita consumption (PCC) by 2038 compared to the 2018 baseline of 141 litres.

Russell said companies must make water efficiency as central to their investment planning as supply.

The drought last summer and temporary restrictions that came with it showed a poor understanding of water scarcity amongst people. This, Russell added, was as true in central government as at household level and needs to be mainstreamed in departmental policy decisions.

Hannah Stanley-Jones, head of sustainable growth at Anglian, echoed this sentiment as she described the “really long time” it took to reach the current position on water policies. “We need to go on an integrated water management journey, we’re at the start of it but it’s really important.”

Stanley-Jones described Anglian’s position with its smart meter rollout programme, which it is implementing across multiple AMPs. “Being able to articulate that as central, not only for AMP8, but for the longer-term delivery strategy is important. We can articulate that the alternatives to spending now on demand management are more supply side investment, this could be reservoirs or desalination, which is less popular with customers.”

To reach customers better with efficiency messages, Russell said behaviours around water use must be better understood, as well as a ramping up of metering.

She noted that companies with metering programmes are often still linked to scarcity status and many are not smart rollouts, which means widespread meter penetration is not anticipated for another 25 years.

Russell queried the ambition of PCC within company plans as all remain above 100 litres PCC at 2050.

Waterwise, together with others in the sector, has called for a targeted fund for demand management equivalent to the dedicated infrastructure schemes through RAPID. At PR24, Ofwat’s framework included a £100 million fund for progressing water efficiency and demand management strategies.