Current position and challenges
3.116 The performance of England and Wales' water supply and sewerage networks has substantially improved since 2005, while the cost of water and sewerage services has also increased (see Chart 3.M).
Chart 3.M: Water and sewerage performance and cost trends 2005-2010
Source: For more details on methods, definitions and sources used in the construction of the indices, see Annex D. |
3.117 All performance dimensions have seen improvements since 2005. Looking forward, developing more customer focused services and reducing the impact on the environment (e.g. through unsustainable abstraction) are areas where performance might be improved. As part of this, it is likely that leakage will need to continue to reduce (see Chart 3.N).
Chart 3.N: Water and sewerage performance and cost - details and comparative performance | |
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Source: Ofwat. Underground supply pipe leakage refers to leakage from pipes that are the customers' responsibility connecting to company stop taps. | Source: Ofwat Note: 2010 data |
3.118 It is expected that population growth and a changing climate will increase pressures on water supply. Under the medium emissions scenario from the UK Climate Projections 2009, it is projected that by the 2050s, summer temperatures may increase and summer rainfall decrease. Short duration droughts (12-18 months) are likely to become more frequent, so that droughts like 1976 will be more common, despite the increased resilience of public water supply and more winter storage. Meeting demand sustainably will therefore require continued investment and innovation from water companies, demand management and changes in the way that water resources are managed.
3.119 The Water Framework Directive (WFD), requiring improvements in the environmental quality of water bodies, allows for these improvements to be phased over three planning cycles ending in 2027. Further investment by water and sewage companies will be required up to and beyond that time to ensure that they are able to continue to provide essential services for a growing population without causing unacceptable environmental impacts.
3.120 The improvements in service and environmental performance by the water industry have required investment, reflecting the level of infrastructure in place prior to privatisation. Household bills have risen correspondingly by 45 per cent in real terms since privatisation, with large differences across the country, illustrating the challenge of balancing household affordability with other objectives.