Martin Furness

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Martin Furness

  1. 1. Sustainable practices in upstream catchments - an economic regulator’s view 9th May, 2012 Martin Furness, Ofwat Water today, water tomorrow
  2. 2. The subject matterWhy is it catching on?The evidence and delivery gapsNext Price review Water today, water tomorrow
  3. 3. AMP5 SchemesWater today, water tomorrow
  4. 4. The sumsThe National Audit Office - the cumulative cost ofwater pollution to be between £700 million and£1.3 billion a year in England and Wales Water UK - potential for £26 billion for prioritysubstances in the WFDOfwat supported £5.3 billion for wastewater andenvironmental schemes in AMP5£460 million to deal with diffuse pollution atwater treatment works in AMP 5Ofwat supported £52 million for catchmentmanagement capex ( just over half for moorlandrestoration) Water today, water tomorrow
  5. 5. Why is it catching on?Low cost sustainable solutions for water companiesPollution controls at sourcePolluter pays-Beneficiary pays-Provider getsClimate change-water quality/quantityWFD-no deterioration and DWPAsSustainable abstractionMoorland erosion Water today, water tomorrow
  6. 6. The evidence and delivery gaps Prioritisation, co-ordination and alignment Pilot catchments Pilot catchments CFE UncertaintyDefra CFE EA climate change Water timescales companies Water companies Rivers Trusts Rivers NE Trusts NE Emerging benefits ? consultants consultants RSPB RSPB Unfairly applied and costly mitigation Pollutant pathways measures ? Modelling Research Land practices Biodiversity Water today, water tomorrow
  7. 7. The evidence and delivery gaps Water management portal? scale up? pollution sources and pathwaysResearchCompany initiatives emerging benefits/local successesPartnerships good practiceInternational lessons Customers? stakeholders Water today, water tomorrow
  8. 8. The evidence and delivery gaps baseline of good practice/stewardship key stakeholder priorities with timely deliveries widen partnership successes examples of sector accountability balance of regulation/voluntary/incentives Water today, water tomorrow
  9. 9. Moorland restorationrate and impact of colour attenuationreduced opex, deferred capex- quantifyprojections-pessimistic?reduced GHG emissionslong term voluntary agreements/ short term compensationmulti benefits and customer value Water today, water tomorrow
  10. 10. Next Price Review Ofwat is engaging and listening AMP 5 progress partnership funding economic justification (framework) customer support outcome, risk based thinkingWater today, water tomorrow
  11. 11. Quantifiable, sustainable, cost beneficial,emerging benefits, reflective of a changing climate,that are community owned Water today, water tomorrow

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