Memorandum submitted by Anglian Water
ANGLIAN WATER
AND CLIMATE
CHANGE
1. Anglian Water provides high quality drinking
water to 4.2 million customers and wastewater collection and treatment
services for 5.6 million customers across a vast area of eastern
England (27,500km2), with 3,000 km of coastline. The region is
dry, in relation to the rest of the country; the population is
predominately rural and widely distributed and is one of the UK's
key growth areas. This results in the need for a high number of
small works, a large distribution network, and a disproportionate
level of pumping, which results in a high energy requirement and
resulting CO2 emissions.
2. We are particularly concerned about the
potential impacts that climate change will have on our region.
By 2080 (using UKCIP's high/high scenario) the climate in the
East of England is predicted to be 3 to 5 degrees Celsius warmer,
we will have wetter winters and drier summers, there will be an
increase in the number of storms and their intensity, and in the
number of flooding events and sea levels will have risen by 22
to 82 cm on the Essex coast. However, we are likely to start seeing
these changes by 2040 and we must consider the implications now
as we are building assets that will potentially last for the next
100 years.
3. Climate change will directly affect our
business in a number of ways; the key implications for Anglian
Water are listed below.
— Requirement for increased winter
raw water storage.
— Supply infrastructure improvements—peak
demand resilience.
— Impact on infrastructure—temporary
or permanent asset loss due to flooding, sea level rise and coastal
realignment.
— Resource competition—environmental
or economic pressure to share water resources.
— Requirement to adapt design standards
eg sewer capacity.
4. We are already seeing the impacts of
climate change in our region with an increase in the frequency
and intensity of extreme weather events and natural/managed changes
to our coastline. Even if greenhouse gas emissions cease now significant
changes to our region will occur during the operational lifetime
of assets that are either currently being built or are being planned
for the period 2005-10 or are being discussed for the period 2010-15.
Anglian Water has developed and is implementing a climate change
action plan to mitigate our impacts and adapt to the potential
changes. We are working closely with the Environment Agency and
other stakeholders to base these decisions on the soundest science
available.
ENERGY CONSUMPTION
AND GREENHOUSE
GAS EMISSIONS
Increasing energy consumption
5. Anglian Water is the largest energy user
in the East of England. The legal and political drivers that require
improved standards in inland, coastal and drinking water quality
all have a direct correlation to energy and resource use and the
resultant CO2 emissions (99% of our energy use is from water or
wastewater treatment processes). Our current consumption equates
to 0.2% of all the UK's electricity; in one day Anglian Water
uses enough electricity to run 40 average households for a year.
6. In 2005-06 Anglian Water used 730 GWh,
which released 253,000 tonnes of carbon dioxide emissions into
the atmosphere. This has risen from 679 GWh during 2000-01, a
7.5% rise in the past five years primarily due to enhanced treatment
to meet the requirements of legislation such as the Bathing Water
Directive, Urban Waste Water Treatment Directive and the Habitats
Directive. Our energy requirements are projected to increase to
900 GWh by 2010 as a consequence of further quality enhancements
(although we are working to mitigate part of this rise through
energy efficiency measures).
7. It is important to highlight the need
to consider the holistic implications on climate change at all
stages in the process of developing new European Directives, their
transposition into domestic legislation and their interpretation
and implementation by regulators. The Government, regulators and
operators must work together to secure the future of our natural
resources in a more sustainable manner.
Meeting the 20% CO2 reduction target by 2010
8. Anglian Water is proactively seeking
to manage our energy demand and mitigate the impacts of our increasing
consumption. Our current energy programme includes investment
in combined heat and power technology (CHP), investigation of
generation from wind power at a number of our sites, use of green
energy supplies (all of these measures currently deliver 22.1%
of our energy needs) and a business wide energy efficiency programme.
However, there are a number of areas where further improvements
could be made by removing blockers to further reductions in CO2
emissions.
9. There is potential in the water industry
to install hydro generation technology on outfalls from waste
water treatment sites. Currently, these schemes are not eligible
for Renewable Obligations Certificates (ROCs), as the sources
are previously pumped, even though the purpose of the flow is
not generation. If the ROCs where adapted to include these types
of projects it would be a considerable boost to establishing numerous
small-scale hydro projects.
10. The development of new digestion and
CHP facilities, fed from by-products of the sewage treatment process,
can be restricted by the need for high capital investment. If
ROCs could be extended to include the heat generated by renewable
CHP, in addition to the electricity generated, then this would
act as a positive additional incentive.
11. Due to the nature of our business and
our region, Anglian Water operates a sizable vehicle fleet. In
2004-05 approximately 12,662,797kg of CO2 were emitted as a result.
In managing this fleet we attempt to source fuel efficient vehicles
to reduce the impact but further measures could be taken. We are
currently exploring the use of biodiesel in our fleet which, according
to research, produces 55% less greenhouse gas emissions than fossil
diesel. However, the main barrier to this substitution lies with
the vehicle manufactures and the warranties that they apply. In
the UK these warranties restrict the blend of biodiesel for use
in vehicles to 5%, obviously restricting the benefits. The Government
should work with the automotive industry to remove this barrier
to allow higher percentage blends to be used, as they are in other
parts of Europe (up to 20%) and in other parts of the world (80%
in Africa).
GROWTH IN
THE EAST
OF ENGLAND
12. With climate change predictions suggesting
potentially more rainfall in the winter period, the overall supply
seems secure but this may require new infrastructure; new winter
filled reservoirs and improvements to the supply network in order
to meet greater summer demands. However, we have to be aware of
the increasing pressures that are likely to be exerted on the
water resource in the summer months, for example nature conservation
and in particular protected wetland habitats. Irrespective of
the challenges that we face in the future, we already have examples
of competing demand between public water supply and important
conservation sites. We are working hard with the Environment Agency
and English Nature to resolve these to protect the environment
whilst maintaining the security of supply.
13. Looking ahead it is imperative that
we work closely with our regulators, stakeholders and of course
our customers in order to ensure that these competing demands
can be managed effectively. Domestic customers and their expectations
will be a key factor in the future. Three of the four growth regions
outlined in the former ODPM's plans will impact on our region.
As you may be aware once these properties are built we are legally
obliged to supply water, which may have knock on implications
for the protected wetland sites, agriculture and other users of
the region's water resource.
14. Of course water efficiency will be crucial
and all new developments will be metered but although voluntary
standards are being set for water efficiency in these properties
there are no incentives or regulation to deliver them. The UK
programme 2006 states that energy efficiency is included in the
amended building regulations but that water efficiency is currently
only included in the code for sustainable homes.
15. Although water is a climate change issue
in its own right we would stress the connection between water
efficiency and reduced CO2 emissions (from the reduction in production
and distribution) and urge water efficiency measures to be included
in the building regulations.
ADAPTATION
16. We were pleased to see that adaptation
is given due note in The UK Programme 2006. The need to develop
adaptive capacity within new assets is a particular concern for
Anglian Water and our region.
17. We have contributed to phase one of
the national adaptation policy framework and the Stern Review
and we are keen to assist Government further on this important
issue. The reduction of CO2 is obviously a priority but the need
for leadership on the adaptation agenda should not be lost. We
would also stress the need for our regulators and in particular
Ofwat to recognise the pressing requirement for building adaptive
capacity and delivering adaptation actions.
CONCLUSIONS
18. Climate Change—The UK programme
2006 is a powerful document but whether the actions will deliver
the required reduction in CO2 emissions is still uncertain. There
are still areas where improvements can be made and where leadership
can be shown. Anglian Water recognises the serious nature of the
challenge we face and is determined to show our intentions through
internal action and participation in external forums such as the
Corporate Leaders Group and Government reviews. Anglian Water
would be pleased to assist the Government further in attempting
to meet the challenges we face from Climate Change.
May 2006
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