APPENDIX 4
Memorandum from the Drinking Water Inspectorate
INTRODUCTION
1. The Drinking Water Inspectorate is responsible
for identifying requirements for drinking water quality, and for
agreeing specific drinking water quality programmes of work with
individual water companies, which are then funded through the
Periodic Review 2004 (PR04) process.
2. For PR04, DWI objectives are to:
— meet current and future drinking
water quality standards.
— facilitate the transition from large
quality-driven programmes of work (the typical post-privatisation
model) to a water company-driven strategic maintenance programme
to achieve agreed minimum levels of service, using mechanisms
such as Distribution Operation and Maintenance Strategies (DOMS)
and the Capital Maintenance Planning Common Framework methodology.
KEY COMPONENTS
OF THE
DRINKING WATER
QUALITY PROGRAMME
3. The main drivers for drinking water
quality for PR04 are as follows:
— completion of the 20-year distribution
mains improvement programme. This applies to mainly five companies
whose renovation programmes will run through most of AMP4,
— improvements to water treatment facilities
where necessary to meet current and future standards,
— programmes of strategic lead pipe
replacement where necessary to meet revised lead standards, and
— improving the acceptability of water
to consumers, by reducing consumer complaints of discoloured water,
and addressing taste and odour issues.
To gain support from DWI, and thus inclusion
in business plans, any scheme proposed by a water company has
to demonstrate justification of need, and have a mechanism to
demonstrate the benefits that accrue to consumers.
GUIDANCE GIVEN
TO DATE
ON THE
SIZE AND
SCOPE OF
THE DRINKING
WATER QUALITY
PROGRAMME
4. The policies and priorities for drinking
water quality for PR04 were set by the Secretary of State for
Environment, Food and Rural Affairs in the documents "Directing
the flow—Priorities for future water policy", November
2002, and "Initial guidance from the Secretary of State to
the Director-General of Water Services—2004 periodic review
of water price limits", January 2003. Further guidance is
expected from the Secretary of State to inform the submission
of final business plan proposals, and final determinations by
the Director-General.
5. Regular guidance has also been issued
by Ofwat on process matters.
6. To date DWI has issued a number of Information
Letters[1][2][3][4][5]to
companies, outlining expectations and requirements for PR04. This
guidance is in the public domain. We have met with individual
water companies throughout the process, as well as other Regulators
and interested parties.
7. Water companies submitted their preliminary
assessment of drinking water requirements in response to Information
Letter 13/02. After an initial technical challenge by DWI, the
costs were used to gauge the potential size of the drinking water
quality programme and any areas of difficulty.
8. Water companies submitted detailed proposals
for each individual scheme in June/July 2003 in response to Information
Letter 4/03. DWI carried out a preliminary assessment of the schemes
and issued Preliminary Opinion Letters (PoLs) setting out whether
DWI was minded, or not, to provide technical support for the schemes
to be included as quality programmes in water company draft business
plans. PoLs were circulated to other stakeholders for comment.
Detailed assessment and technical audit of these schemes is substantially
complete, with a view to providing water companies with a Letter
of Support (LoS), or otherwise, for them to include the schemes
in their final business plan proposals to be submitted to Ofwat
in April 2004. PoLs and LoS take account of Ministerial guidance
on the quality programme, and will be confirmed, or otherwise,
on issue of further Ministerial guidance.
Customer consultation.
9. DWI was a contributor to the joint water
industry research into customers' views on water and sewerage
services in England and Wales. Stage 1 was wide ranging, and among
its main findings was a desire by customers for improvements in
tap water taste and smell.
10. Stage 2 explored customers' views on
more localised water related issues and the impact this would
have on their bills. Among the main findings were:
Importance of maintaining services
— A large majority of customers consider
it either "important" or "very important"
that the current service levels are maintained and not reduced.
"Maintaining the quality and safety of drinking water"
and "ensuring a reliable and continuous water supply"
were given the highest levels of support nationally.
Importance of improving services
— The top two areas for improvement,
without any additional costs, were "improving the appearance,
taste and smell of tap water" and "drinking water quality/safety
of tap water".
Appeal of individual elements of each plan
— The area of service delivery in the
plans most supported by customers nationally was "ensuring
the safety of tap water". "Managing the appearance,
taste and smell of tap water" and "ensuring reliable
and continuous water supply" were the next most supported
service elements.
DRINKING WATER
QUALITY ACHIEVEMENTS
DELIVERED AS
A RESULT
OF THE
PERIODIC REVIEW
1999 PROCESS
11. The drinking water quality programme
determined by the PR99 process is currently being delivered by
water companies. The main elements of this programme enable water
companies to meet existing standards, the new standards in the
Water Supply (Water Quality) Regulations 2000, and key improvements
in meeting regulatory requirements for cryptosporidium. Substantial
progress has been made to date, and we expect all schemes to be
completed by 30 March 2005. Progress is monitored by DWI by means
of regular information returns, and audits, and is reported annually.
February 2004
1 IL 13/02-The 2004 Periodic Review of Prices and AMP4-Initial
Guidance. Back
2
IL 14/02-The 2004 Periodic Review of Prices and AMP4-Confirmation
of Initial Guidance. Back
3
IL 15/02-Distribution Operation & Maintenance Strategies-DWI
Requirements and Expectations. Back
4
IL 4/03-The 2004 Periodic Review of Prices and AMP4-Further Guidance. Back
5
IL 5/03-The 2004 Periodic Review of Prices and AMP4-Appraisal
Methodology for Water Company Proposals for Drinking Water Quality
Improvement Schemes. Back
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