What Drought Means for a Water Company

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1 What Drought Means for a Water Company Richard Bienfait Managing Director, Veolia Water Central 13 th June 2012

2 Responsibility and risk We have a legal responsibility to supply wholesome drinking water 24/7 Weather plans are becoming more varied and less predictable Droughts are unique Key issues add to risks and uncertainty We have a plan for managing droughts We must maintain our legal responsibilities even in a drought 2

3 Our business operates in three areas in south east England Regulated water industry in England and Wales VW Regulated WoC area Other WoC area Water and Sewerage Company (WaSC) area 0 Northumbrian Veolia Water Central Largest WoC in England and Wales by revenues Supplies a population of c.3.2m Typical daily supply Ml/d United Utilities Yorkshire Cambridge Veolia Water East Supplies a population of c.160,000 Typical daily supply - 29 Ml/d Dee Valley South Staffordshire Severn Trent Anglian Northumbrian Bristol Cholderton & District South West Dwr Cymru (Welsh) Wessex Bournemouth & West Hampshire Thames Southern Portsmouth Northumbrian London Sutton & East Surrey South East Veolia Water Southeast Supplies a population of c.160,000 Typical daily supply - 43Ml/d 3

4 The sources of our water supply Grafham (3%) (not to scale) Sunnymeads (20%) Veolia Water Central 60% ground water sources boreholes 40% surface water sources - 4 River Thames abstraction points - Grafham reservoir import Egham (10%) Chertsey (4%) Walton (3%) 4

5 Drought Management Plans Our drought Management Plan sets out how we deal with droughts Our stated level of service is 1 in 10 years Plans are updated annually and subject to public consultation every three years Latest plan awaiting Defra approval 5

6 Jan-10 Jan-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Water Level (maod) Groundwater drought triggers 100 Groundwater Drought Triggers Autumn/Winter Spring Summer Average Drought Zone 1 Drought Zone 2 Drought Zone 3 Drought Zone 4 6

7 Rainfall (mm) Soil Moisture Deficit (mm) Long term average rainfall and SMD LTA rainfall and SMD autumn / winter spring / summer Sep- 10 Oct- 10 Nov- 10 Dec- 10 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- 12 Feb- 12 Mar- 12 Apr- 12 May LTA Rainfall LTA SMD 7

8 Effective Precipitation (mm) Soil Moisture Deficit (mm) Sep-10 Oct-10 Nov-10 Dec-10 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-12 Feb-12 Mar-12 Rainfall and Recharge compared to LTA Rainfall, Recharge and SMD compared to LTA Deficit Rainfall 153mm (64%) Deficit Recharge 47mm (76%) Rainfall of LTA Recharge of LTA SMD Deficit Rainfall 139mm (67%) Deficit Recharge 145mm (25%)

9 Water Level (maod) Drought Trigger Predictions March 2012 Jan-10 Jan-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec Groundwater Drought Triggers Average Drought Zone 1 Drought Zone 2 Measured Drought Zone 3 Drought Zone 4 Predicted Level 60% 9

10 April Rainfall 10

11 Jan-10 Jan-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Water Level (maod) Drought Trigger Predictions May 100 Groundwater Drought Triggers Average Drought Zone 1 Drought Zone 2 Measured Drought Zone 3 Drought Zone 4 Predicted Level 100% rainfall Predicted Level 80% rainfall Predicted Level 60% rainfall

12 Current Activities Following our Drought Management Plan Introduced Temporary Use Ban from 5 April Radio, press and communications with key stakeholders Managing over a 5% increase in calls from our customers relating to the drought Abstracting more surface water and importing more water from Grafham Driven down leakage, now 15% below Ofwat target Increased promotion of water efficiency Now producing 100Ml/d less than last year and less than 70Ml/d (9%) than a typical year 12

13 01 Feb 03 Feb 05 Feb 07 Feb 09 Feb Feb 13 Feb 15 Feb 17 Feb 19 Feb 21 Feb 23 Feb 25 Feb 27 Feb 29 Feb 02 Mar 04 Mar 06 Mar 08 Mar 10 Mar 12 Mar 14 Mar 16 Mar 18 Mar 20 Mar 22 Mar 24 Mar 26 Mar 28 Mar 30 Mar 01 Apr 03 Apr 05 Apr 07 Apr 09 Apr Apr 13 Apr 15 Apr 17 Apr 19 Apr 21 Apr 23 Apr 25 Apr 27 Apr 29 Apr 01 May 03 May 05 May 07 May 09 May May 13 May 15 May 17 May 19 May 21 May 23 May 25 May 27 May 29 May 31 May mega litres per day Demand Daily Demand Profile Jan st June 2012 Weekends Hosepipe Ban Imposed Daily Demand Daily Rainfall (Bishops Rise Tipping Gauage) (mm) Average Daily Temp ( C)

14 01 Feb 03 Feb 05 Feb 07 Feb 09 Feb Feb 13 Feb 15 Feb 17 Feb 19 Feb 21 Feb 23 Feb 25 Feb 27 Feb 29 Feb 02 Mar 04 Mar 06 Mar 08 Mar 10 Mar 12 Mar 14 Mar 16 Mar 18 Mar 20 Mar 22 Mar 24 Mar 26 Mar 28 Mar 30 Mar 01 Apr 03 Apr 05 Apr 07 Apr 09 Apr Apr 13 Apr 15 Apr 17 Apr 19 Apr 21 Apr 23 Apr 25 Apr 27 Apr 29 Apr 01 May 03 May 05 May 07 May 09 May May 13 May 15 May 17 May 19 May 21 May 23 May 25 May 27 May 29 May 31 May mega litres per day Demand 2012 v Daily Demand Profile Jan st May 2012 Weekends Hosepipe Ban Imposed Daily Demand 20 Daily Demand

15 Planning for 2013 and beyond Focus is on a third dry winter Reviewing source outputs under very low water level conditions Looking at innovative sources of water Undertaking network modelling Future concerns with pollution of sources and sustainability reductions 15

16 Conclusions Droughts pose a significant impact on water companies, their customers and the environment We still have a legal responsibility to supply to customers Different water companies will have different responses which are linked to their water resource availability Droughts are planned for as part of routine business, but are exceptional events that vary in their level of severity Uncertainty in water availability is managed through a structured analysis of historic source performance and the hydrogeological environment of the source Planned demand restrictions are imposed on customers are to ensure there is an adequate supply of water for essential purposes 16

17 Beane Road, Hertford Aug 1998 Thank you Any questions? 17

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