3 Water Efficiency
33. The Environment Agency published an analysis
of the impact that climate change and population growth will have
on future water availability alongside the White Paper.[50]
Their modelling predicted that less water would be available in
the future for businesses, people, and the environment, and that
pressures on availability would not be limited to the south and
east of England. As water resources come under increasing strain,
it will become imperative that water is used wisely and its waste
is minimised.
34. Water for Life includes proposals
to improve water efficiency by encouraging and incentivising consumers
to use water wisely. Measures include Defra working with companies
and regulators to carry out a campaign to save water and protect
the environment; research into the reasons why individuals currently
do or do not seek to conserve water; and using the opportunities
presented by the Government's "Green Deal" programme
to promote water efficiency. The possibility of using product
labelling to inform customers about the efficiency of products
such as dishwashers and washing machines is also discussed in
the White Paper.[51]
35. Blueprint for Water was critical of the White
Paper's overall approach to water efficiency:
...the policy drivers for water efficiency are distinctly
lacking. We are concerned that the expectations on reducing demand
are too oblique and not supported by policy instruments (such
as incentives for demand management) that will deliver real savings.[52]
Metering
36. At present, about 40% of domestic customers
across England and Wales are metered,[53]
meaning that for over half of the population there is no direct
connection between the amount of water that they use and the size
of their water bill.
37. Previous reviews and inquiries have examined
the case for increasing levels of metering. Anna Walker's Independent
Review of Charging for Household Water and Sewerage Services
concluded that universal metering could save about 16% of average
household demand.[54]
Walker concluded that the benefits of metering varied from region
to region and that, perhaps unsurprisingly, benefits were high
in those areas where water was scarce. She recommended that Government
set a target for metering penetration to reach 80% in England
by 2020.[55] The Committee
on Climate Change has also considered the issue: the Chair of
its Adaptation Sub-Committee, Lord Krebs, told us that his Committee
believed that "consumers will not make sufficient effort
to reduce water use unless there is a clear price signal".[56]
38. We heard persuasive evidence about the role
that metering plays in reducing demand during the course of our
inquiry. Wessex Water told us that metering was the single most
significant measure in promoting water efficiency and that fitting
a meter on a change of occupancy reduces average consumption by
15% and peak consumption by over 20%.[57]
39. The White Paper does not contain any specific
objective to increase levels of metering, but simply encourages
water companies to actively promote metering to those who would
benefit.[58] Environmental
groups were highly critical of what the Chartered Institution
of Water and Environmental Management described as a "weak"
approach to metering,[59]
with WWF-UK saying that they were "extremely disappointed".[60]
The suggestion that water companies promote metering to those
who would benefit was described as "pointless; clearly they
would take up the option and the rest would necessarily pay more
to compensate".[61]
There was a call for a more strategic approach to metering, with
Waterwise commenting that it was:
disappointing that the Government rules out a strategic
transition to full metering in favour of a patchwork of local
solutions... A Government commitment to a managed increase in
metering, to meet Walker's 80% target for England by 2020 - supported
by water efficiency retrofit and advice, and social tariffs -
would have been more effective.[62]
40. The Minister defended Defra's approach, saying
that whilst metering is "an important part of making people
more aware of the water they use", it was not "the total
solution". He cited particular concerns about the costs
of switching to a metered supply for households on lower incomes.[63]
We consider affordability issues later in this report, but it
is worth noting at this point that Anna Walker concluded that
paying for the volume of water supplied was in fact the fairest
method of charging customers.[64]
41. It is extremely disappointing
that a White Paper that places such an emphasis on valuing water
says so little about metering. With water set to become an increasingly
scarce resource, we believe that the Government must use water
meters as a means to encourage responsible use of water. We recommend
that the Government set a clear and ambitious objective to increase
levels of metering, taking account of Anna Walker's recommendation
that metering penetration reach 80% by 2020.
42. We are conscious that a switch to metering
could see bills rise for some poorer households as their bills
reflect the amount of water that they use rather than the value
of their homes. We believe that the provision of appropriate support
for such households is a distinct issue which should be addressed
alongside, but separately from, the clear imperative to increase
levels of metering.
Rainwater Harvesting and Recycling
Water
43. The recent drought has highlighted the importance
of retaining the water that falls as rain. The Rainwater Harvesting
Association suggested that rainwater harvesting should be better
incentivised and in some cases required, for example by incorporating
it within the Code for Sustainable Homes and encouraging its incorporation
in the design of schools and commercial and industrial buildings.[65]
The Environment Agency agreed that the planning system could encourage
water efficiency without the need for legislative change:
It may be that, instead of going for all-out legislation
to achieve it, just by doing some relatively small things with
the planning system, with new construction and with making guidance
available to everyone, you could actually get quite a lot of change.[66]
44. The White Paper recognises that there is
scope for recycling of 'black-water' which is not treated to drinking
water standards but could be used for other functions such as
flushing toilets or irrigation.[67]
The Environment Agency said that they were "actively looking"
at this area[68] and
Defra told us that they expected that the White Paper's market
reform proposals would encourage new entrants to come forward
with solutions to improve levels of water recycling.[69]
We recommend
that Defra take more active steps to promote rainwater harvesting
and water recycling and seek to incorporate incentives or requirements
for their inclusion in the design of new developments.
Leakage
45. With 3,365 million litres of water lost to
leaks every day in England and Wales,[70]
reducing leakage levels could play a major part in improving water
efficiency. Water companies have already made some progress, with
a 36% reduction in levels of leakage since 1994-95.[71]
Leakage targets for each company are set by Ofwat with the aim
of moving companies to the Sustainable Economic Level of Leakage
(SELL), the point at which it would cost more to reduce leakage
further than it would to save water in different ways or to develop
additional supplies. The Water White Paper notes that the current
methodology used to calculate SELL does not fully reflect the
long-term sustainability of the water environment, and Defra has
committed to review SELL.[72]
46. In addition to the water wastage that is
directly attributable to leaks, the Consumer Council for Water
argued that leakage can have a damaging effect on efficiency by
making customers less likely to take their own measures to conserve
water. They describe customers' negative perceptions of leakage
as the "biggest barrier" to customer engagement with
water efficiency and argue that this should be taken into account
in the calculation of SELL, noting that at times of water scarcity
customer engagement becomes increasingly important:
Obviously, the perception issue becomes that much
more acute during times of drought, because they are being asked
to save water and if their perception is that companies are not
doing the same then obviously that can affect their appetite to
actually play their part. It is a very important point and one
we should not underestimate.[73]
Water companies acknowledged this, with Anglian Water
commenting that "one visible leak that is not repaired undermines...
all the messages we send out to customers as to what we want them
to do in terms of water efficiency. That is a clear challenge
we have to take on."[74]
47. We recognise the progress
that water companies have made in reducing leakage levels but
urge companies and the regulator to do more to reduce the amount
of water that is wasted through leakage. We recommend that in
reviewing guidance to companies on the Sustainable Economic Level
of Leakage, the Government and regulators should take account
of the impact that leakage levels have on customers' willingness
to engage with efficiency measures, if necessary carrying out
further research to seek to quantify this impact.
50 A Case for Change: Current and Future Water Availability,
Environment Agency, December 2011 Back
51
Water for Life pp 86-88 Back
52
Ev w44 Back
53
Exploring the costs and benefits of faster, more systematic
water metering in England and Wales, Ofwat, October 2011 Back
54
Walker, p74 Back
55
Walker, p81 Back
56
Ev w52 Back
57
Ev w10 Back
58
Water for Life, p65 Back
59
Ev w36 Back
60
Ev 63 Back
61
Ev w5 Back
62
Ev w15 Back
63
Q 268 Back
64
Walker, p70 Back
65
Ev w18 Back
66
Q122 Back
67
Water for Life, p58 Back
68
Q 96 Back
69
Q 261 Back
70
Figures provided by Ofwat Back
71
Water for Life, p50 Back
72
Water for Life Back
73
Q 149 Back
74
Q 189 Back
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