3 SEWER FLOODING
22. The timing of our inquiry has meant that we have
seen only the draft determination of price limits. The final determination
may be very different. Nevertheless, there are some features of
the draft determination which, if reflected in the final determination,
will cause some stakeholders concern. For customers, one of the
main areas of concern is the scope that Ofwat has allowed companies
to tackle sewer flooding. At present, 0.04% of households - approximately
20,000 - are described as being "at risk" of sewer flooding,
which means they face a one in ten year likelihood of experiencing
sewer flooding. The problem is not evenly spread throughout the
country, but instead is often clustered on certain areas.
[23] This is consistent
with the Office of Science and Technology's 2002 Foresight report
on flood and coastal defence, which we noted in our recent report
on Climate Change, Water Security and Flooding. The OST report
concluded that, in some areas, the limits of sewer capacity are
already being reached and that sewers will need to be upgraded
to be able to cope with storms and sudden flood conditions.[24]
23. In the joint customer research conducted at the
start of the review, the reduction of sewer flooding was identified
as a key priority for customers. However, reducing the risk of
sewer flooding at some properties can be very expensive and Ofwat
has set a cap of £120,000 per property on the expenditure
that companies can include in their business plans. Ofwat says
this will still allow companies to halve the number of properties
at risk of sewer flooding and that companies may still tackle
the more expensive properties if they can present an adequate
cost-benefit analysis of the case for doing so.[25]
24. Water companies and WaterVoice have expressed
disappointment that the backlog of properties at risk of sewer
flooding will still not be cleared if the final determination
closely reflects the draft.[26]
We accept that it may not be possible to address every property
at risk of sewer flooding, but we are concerned that the problem
appears to linger on from price review to price review, leaving
a backlog of properties waiting to be addressed. This is of particular
concern given the likelihood of increased risk of sewer flooding
identified in the Office of Science and Technology's Foresight
report on flood risk and climate change. We recommend that companies
prioritise action in those areas at highest risk and that, in
examining the cost-benefit ratio of plans presented by the companies,
Ofwat consider the distress and inconvenience of those affected
as well as economic damage.
23 Qq 43-47 [Ofwat] Back
24
Environment, Food and Rural Affairs Committee, Sixteenth Report
of Session 2003-04, Climate change, water security and flooding,
HC 558, para 33; www.foresight.gov.uk/fcd.html Back
25
Qq 37, 45 [Ofwat] Back
26
Q136 [Water UK)], Y4 [WaterVoice], paras 35-37 Back
|
