All water companies are regulated by both a financial body, Ofwat, and an environmental body, the Environment Agency. Click on the logos below to find out more about each regulator.
Environment Agency
The Environment Agency is responsible for protecting and improving the environment in England and Wales.
During a drought we have the task of striking the fine balance between water for public supply and water for the natural environment.
Back in 2006 in the south east we were in the grips of our worst drought for 100 years. The drought was caused by nearly two years of below-average rainfall over the previous two years. But as we head towards this summer, following a wet winter and early spring, groundwater levels are normal and reservoirs full or close to full.
At the height of the drought, we saw widespread environmental problems. It may take some time to understand the full impact it has had on the environment and it is important that we do not become complacent. Several weeks of hot dry weather could start to put the environment under pressure again.
We have all taken a long, hard look at the way we use water and we hope people will continue to use water wisely, even though the drought is over. We should be saving water all the time, not only in times of drought. By working together to save water all year round we can make sure there is enough water for public supply without sacrificing the environment.
For more information on how we are working to protect the environment visit www.environment-agency.gov.uk.
As the economic regulator of the water industry, Ofwat’s role is to enable efficient water companies to finance the delivery of reliable water supplies to their customers. We monitor the companies’ performance and take action if they fail to deliver for customers.
They have to be able to plan for changing regional populations and the increasing demands of customers. When we set prices we do so in the context of a longer term view of the security of water supplies.
We last set price limits in 2004 and allowed £3.1 billion to improve the security of supplies. We monitor companies’ progress in delivering these improvements. We also monitor companies’ use of water efficiency measures.
In a drought, customers still expect good service, but we recognise that companies may need to impose restrictions, such as hosepipe bans, to reduce the risk of more severe restrictions at a later stage. Indeed customers tell us they would rather have occasional hosepipe bans than pay the higher bills needed to avoid them.
Customers are also keen to see the companies reduce leakage. While companies have reduced leaks by an amount equal to the daily needs of 10 million customers over the past decade, we expect the trend to continue with total leakage planned to fall by a further eight per cent by 2010.
An important aspect of water management is managing demand through metering – also the fairest method of charging. We are encouraging companies to extend metering, particularly in water stressed areas.
Regina Finn, chief executive of Ofwat, said: “Helping the water companies to ensure they can continue to meet demand for water well into the future is a key part of our role.
“They have to be able to plan for changing regional populations and the increasing demands of customers. When we set prices we do so in the context of a longer term view of the security of water supplies.
“Companies also have to able to respond to unusual circumstances and customers have told us that they would rather risk occasional hosepipe bans than have to pay more to avoid them altogether.
“Customers are also keen to see the companies reduce leakage. Although they have reduced leaks by an amount equal to the daily needs of 10 million customers over the past decade, we expect them to continue this trend and reduce leaks by a further eight per cent by 2010.
“An important aspect of water management is managing demand through metering – also the fairest method of charging. We are encouraging water companies to extend metering, particularly in water stressed areas.”
Call 0121 625 1300 / 1373 or email enquiries@ofwat.gsi.gov.uk
Security of supply, leakage and the efficient use of water 2004-05 report