Draft Water Resources Management Plan - Overview For consultation

Transcription

1 Draft Water Resources Management Plan - Overview For consultation

2 South West Water Draft Water Resources Management Plan Contents Our Draft Water Resources Management Plan 3 Government and Regulatory Policy 4 Your water supply 4 What have our customers said? 6 How have we developed our Plan? 8 1. What does the future look like? 9 2. Understanding the options Assessing the choices 13 A Water Resources Management Plan sets out how we plan to manage supply and demand for the next 25 years. It examines the strategic issues that affect available water and demand and the interventions to ensure customers receive a reliable supply. This plan is complimented by our Drought Plan. This covers a 5 year period and explains the operational measures we would undertake during drought conditions to enhance supplies, manage customer demand and minimise environmental impacts. 4. Bringing it together 16 Draft Water Resources Management Plan Consultation 20 Appendix 23 Summary of Overall Plan For more information click here to access our website Colliford Water Resource Zone 26 Roadford Water Resource Zone 28 Wimbleball Water Resource Zone 30 2

3 Our Draft Water Resources Management Plan Our Water Resources Management Plan details how we intend to maintain the balance between water supply and demand for the next 25 years. Customers tell us their number one priority is a safe and reliable supply of water. Our Draft Water Resources Management Plan (WRMP) forms a critical component of how we deliver against this outcome and sets out our actions for doing so. This Plan also contributes to our overall outcome for ensuring resilient services. It sets out how we expect water supply and demand to change over time, what challenges this may give us and how we plan to solve them if they occur. The Plan is updated and refreshed every five years. We welcome comments from customers and other stakeholders on our latest proposed Plan. What s new for 2018? We have updated all our supply and demand forecasts with the latest information. We have assessed our Plan against Government and customer requirements. We have tested our Plan against future uncertainties. We have proposed measures that will place leakage and our water consumption in Upper Quartile performance in the water industry. southwestwater.co.uk/waterfuture 3

4 South West Water Draft Water Resources Management Plan Government and Regulatory Policy Your water supply The long term planning of water resources is a vital part of the government s objectives to deliver resilient water supplies. The guiding principles from Government in producing a Water Resources Management Plan are: Take a long-term, strategic approach to protecting and enhancing resilient water supplies Consider every option to meet future public water supply needs Protect and enhance our environment, acting collaboratively Promote efficient water use and reduce leakage. Government principles are supported by guidance from the Environment Agency (our environment regulator) on how to produce a Water Resources Management Plan. In building our Plan we have checked against the Government and regulator requirements. South West Water provides drinking water to a population of 1.7 million across Devon, Cornwall and parts of Dorset and Somerset. We divide the region into three main strategic supply zones, called Water Resource Zones, each of which is principally based on a large strategic reservoir. The following sections of this report take you through how your water is supplied and how we have developed our long term plan. Truro Did you know We are part of the West Country Water Resources Group that examines regional water resource planning issues. Colliford Zone This area largely supplies the Cornwall area. The main source of water is Colliford Reservoir on Bodmin Moor which works in conjunction with two former china clay pits and smaller reservoirs and river intakes across Cornwall. 4

5 Barnstaple Taunton Exeter Plymouth Wimbleball Zone Roadford Zone This area largely supplies North and South Devon. The main source of water is Roadford Reservoir, which works in conjunction with smaller reservoirs and river intakes in the area. This area supplies East Devon, including Exeter, and parts of Somerset and Dorset. The main source of water is Wimbleball Reservoir on Exmoor, which works in conjunction with the River Exe and various groundwater sources across East Devon. 90% of water in the South West Water area is from rivers and reservoirs. The rest is groundwater. Did you know southwestwater.co.uk/waterfuture 5

6 South West Water Draft Water Resources Management Plan What have our customers said? It is important that our long term planning delivers what customers want. Over 2017 we have held focus groups and used an innovative interactive video across the region to understand customer preferences to how we plan the supply into the future. The research told us that: Households are strongly averse to a service level lower than that received currently. Customers prefer solutions that reduce the demand for water. Agreeing leakage levels based on the Economic Level of Leakage was sensible - there is not much appetite to go further if this impacts on customers bills. There is strong support for smart metering and help with water efficiency but these are a lower priority than other areas of our business such as reducing pollution. There is some support for managing land-use to protect future supplies. There is support for new supplies only if they do not damage the environment. Our research team met over 600 households and 270 different businesses across our region. Did you know How customers value different choices ( k/ml/d) Leakage reduction Metering Installing smart meters Helping customers conserve water Managing land use Transfer water We asked customers how they value different choices for meeting the future demand for water. Reducing leakage was valued five times higher than taking water from rivers. We used this data in our analysis to develop a plan that aligned to customer preferences. Re-use treated water 160 Taking water from the ground 150 Taking water from rivers

7 Interactive video To gain further insight to shape our Plan, we developed an interactive personalised water resources video. This explained to customers our water supply system, the future challenges and the options and choices we have in developing our Plan. This video has been used by over 2,500 customers who gave their opinion on how we should balance our Plan between demand reduction and new water resource development. Customers were also asked about whether we should undertake activities early, or late. The results showed a clear steer from customers: Plans that include reducing demand are preferred over accessing more water. Survey results Strategy % Reduce demand Access more water The preference was that actions are started now or within 5-10 years, rather than waiting for supply deficits to occur. There was some small inter-generational difference in timing, with fewer younger people seeking to wait for action to manage future risks. Timescales We used this information to help develop our draft strategy and how we balance future risks % 0 Start now 1-5 years 5-10 years years years Start later Age groups southwestwater.co.uk/waterfuture 7

8 South West Water Draft Water Resources Management Plan How have we developed our Plan? To produce our WRMP we follow a set of national best practice guidelines. What does the future look like? The process starts by collating information. We use data from the government on population growth to forecast the increase in demand in our region. We also forecast how we think our water supply capability might change taking into account factors such as climate change. We bring this information together to understand the most likely view of what our future balance between supply and demand looks like and if we have a future problem. Understanding the options We then research what future options there are available to increase supply or reduce demand if needed. This includes using water transfers within our area and with our neighbouring water companies. We produce separate forecasts for each of our Water Resource Zones. Each of our water resource zones is a standalone area and we produce separate forecasts for each one. Details of our forecasts for each Zone can be seen in the Appendix. Assessing the choices We then assess the choices available to solve any problem, examining their costs and benefits, environmental and social impacts. This includes testing the Plan to see how sensitive it is to different assumptions on the future. Bringing it together Finally we bring the information together to produce an overall strategy and detailed plan that seeks to find the best overall approach for maintaining the balance between supply and demand. Strategy and Plan Over the next 25 years, population is expected to grow from 1.7m to nearly 2m. Did you know 8

9 What does the future look like? Barnstaple Exeter Taunton Our region is well placed for the future. In all our Water Resource Zones, the most likely view shows we do not expect a shortfall between supply and demand over the next 25 years even if no action is taken with the exception of a very small deficit (c 0.6%) in Colliford in In practice, this means we will be able to meet future demand if we see a repeat of the most extreme drought that we have seen historically. For our region this is the 1975/76 drought. Our forecasts show the demand in our region is steady over the next 25 years even if we take no action. A key factor that contributes to this is that although population is growing, improved water efficiency of appliances such as washing machines offsets the higher demand. Did you know Roadford is the only strategic reservoir without a winter pumped storage scheme. Its refill each year is solely dependent on receiving sufficient rain. 1 Target Headroom is a planning allowance all water companies include in their forecasts to take account of known scenarios. Water companies typically include less and less allowance for scenarios as time progresses as there is more time to respond. Megalitres per day Megalitres per day Megalitres per day Plymouth Truro Forecast demand and target headroom 1 Supply capability (Water Available for Use, WAFU) Colliford Zone baseline Roadford Zone baseline Wimbleball Zone baseline 2016/ /20 20/ / / / /45 southwestwater.co.uk/waterfuture 9

10 South West Water Draft Water Resources Management Plan 1. What does the future look like? cont d Customers place a reliable and safe water supply as their number one priority. As the future is uncertain we performed a number of tests to see how sensitive our forecasts are to key risks or policy decisions. Our work shows that our Water Resource Zones are not sensitive to most of the future challenges or policy decisions. The table opposite shows they have some small sensitivity in the medium to long-term to: Resilience (plausible droughts) droughts more extreme than 1 in 200 years New environmental needs reductions in the amount of water we can abstract in order to protect the environment Higher household demand - an extra 12.5 Ml/d above our most likely forecast by These scenarios give rise to small supply demand deficits in the medium to long-term. The deficits are both small and in the future. The likelyhood of these events is also low. There is sufficient time to act and mitigate the risk. The sensitivities lie on both the supply and demand side of our forecasts. To mitigate these requires our Plan to look at a range of actions. 2 This is termed the PR19 Draft Methodology in the technical report. Future scenarios against which we tested our Plan Scenario Base case (most likely) Customer Willingness to Pay (WTP) Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% 2 Household demand high forecast Non-household demand high forecast Description Our central estimate of forecast supply and demand. This is our most likely view of the future Leakage levels reduced in line with Customer Willingness to Pay Supply capability assessed under future, more severe droughts than seen historically. Typically with a return period greater than 1 in 200 years Supply capability assessed under a 1 in 200 year drought Short term supply risk kept constant by offsetting 10 years growth in demand with new resource schemes only Short term supply risk kept constant by offsetting 10 years growth in demand through leakage reduction only Supply capability reduced for possible future new environmental needs The impact of moving to a new industry reporting method for leakage Leakage reduced by 15% by 2025 in line with draft Regulatory policy 12.5 Ml/d by 2045 Non-household demand increased to high forecast; based on higher economic growth in the region Full details on the scenarios assessed are given in the main technical report. What is Customer Willingness to Pay? This is the amount customers would be willing to pay for achieving a certain outcome. Through survey results we collect this data on leakage reduction and other activities we could do to manage our long-term supply demand balance. We can then use this in our models to see, for example, how far customers would be willing to reduce leakage compared to other choices. 10

11 1. What does the future look like? cont d Performance of our supply demand position against future scenarios Colliford Zone 2016/ Base case (most likely) Customer WTP Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% Household demand - high forecast Non-household demand - high forecast Roadford Zone Base case (most likely) Customer WTP Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% Household demand - high forecast Non-household demand - high forecast Wimbleball Zone Base case (most likely) Customer WTP Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% Household demand - high forecast Non-household demand - high forecast No sensitivity Some sensitivity (less than 3% supply demand gap) Large sensitivity (more than 3% supply demand gap) southwestwater.co.uk/waterfuture 11

12 South West Water Draft Water Resources Management Plan Understanding the options Although our most likely view of the future shows we do not need to take any new action over the next 25 years to manage our supply demand position, the sensitivity analysis does show possible deficits under some scenarios. We have looked at a range of options that we could undertake to understand what they would cost and how they would mitigate the future uncertainties we are sensitive to. We examined over 100 options in total, understanding the costs and benefits from each. These were filtered down to a short-list that excluded any options that: Had low yields Had high cost Had high environmental impact Were unreliable or had promotion issues Had water quality issues Did not promote affordability (demand options only). For consistency with government policy and the preferences from customer research, in developing the options we gave particular focus to options that reduced leakage or promoted water efficiency. We used this data to understand how different options performed in mitigating the scenarios in the forecasts where we have some long-term sensitivity to change. Did you know We used Waterwise to help us develop options for new and innovative ways to promote water efficiency Summary of options to manage supply demand deficits Original list Short-list Interconnection between water companies and water trading 17 0 Customer management options (reducing demand) Distribution management options (reducing leakage) Increasing supply (increase use of existing sources and/or development of new sources) Total Why filter options? It is best practice to filter options down to a short-list to take forward into more detailed assessments of plans. This is to ensure that plans are built up from options that will be deliverable and cost effective in practice. 12

13 Assessing the choices To assess the choices available we used a systematic approach across all Water Resource Zones: 1. We built an economic model for each Water Resource Zone. This allowed us to understand the costs and benefits of implementing options in that Zone over the planning period. 2. For our most likely forecast and each of the sensitivity tests we calculated what the lowest cost solution was to solve any supply demand problem. This examined a number of solutions built around Customer Willingness to Pay to understand how that affected the possible solutions. 3. We then used a scoring mechanism to rate the performance of the options against five criteria: Financial Customer and affordability Reliability Resilience Markets and innovation. The results for each Zone are summarised in the charts overleaf with more detail in the Appendix. The key findings were: A do nothing plan performs poorly overall as there is no forecast supply demand deficit, the lowest cost solution for customers is for us to do nothing. However, this does not meet government, regulatory or customer expectations to see reductions in leakage or promote efficient use of water or mitigate future risks. Where the scenarios show we could have a shortfall between supply and demand, solutions based on leakage reduction perform well leakage reduction and customer demand management feature as lowest cost solutions for managing future risks. Reducing our own demand for water at our sewage treatment works is also a low cost solution. Water resource options are higher cost than demand management but have greater certainty of delivery, and new water resource options perform better for drought resilience. Customer support for leakage reduction is high we used data on Customer Willingness to Pay for leakage reduction to understand how far we could reduce leakage. This data supported reductions down to Ml/d, but would come at a potentially large increase in actual customer bills. Whilst the precise activity in each Water Resource Zone is different, the overall themes from the assessment show a consistent trend. Leakage and demand reduction feature strongly as solutions for managing future risks however, those solutions have lower reliability and resilience than the development of new water resource options. There is also a trade-off between reducing leakage and affordability. The more leakage is reduced, the greater the impact on customer bills. Reducing leakage by 15% as proposed by regulators would mitigate most future risks over the 25 year period, but would give rise to large bill increases. Water resource options are more expensive but are more reliable. They could act as potential back-up options to the leakage and demand reductions should they not deliver the benefits expected. Overall the results show that future plans may need significant investment if all the scenarios were to materialise. A deeper understanding of the scenarios and the impact on our forecasts will be an increasingly important part of our future planning decisions. southwestwater.co.uk/waterfuture 13

14 South West Water Draft Water Resources Management Plan 3. Assessing the choices cont d Colliford Zone Performance Score Base case (most likely) Customer WTP Plausible droughts 1 in 200 year drought Resource only plan 28 Demand only plan 27 Environmental needs 28 Leakage reporting methodology 27 Leakage reduced by 15% 25 Household demand - high forecast 30 Non-household demand - high forecast Score Roadford Zone Performance Score Base case (most likely) Customer WTP Plausible droughts 26 1 in 200 year drought Resource only plan 29 Demand only plan Environmental needs Leakage reporting methodology 27 Leakage reduced by 15% Household demand - high forecast 29 Non-household demand - high forecast Score

15 3. Assessing the choices cont d Wimbleball Zone Performance Score Base case (most likely) Customer WTP Plausible droughts 26 1 in 200 year drought Resource only plan 28 Demand only plan 25 Environmental needs 28 Leakage reporting methodology Leakage reduced by 15% 26 Household demand - high forecast 28 Non-household demand - high forecast Score Financial Customers and affordability Deliverability Resilience Markets and innovation Further detail on the scoring approach can be found in the main technical report. Why use scores to compare different options and choices? A scoring approach helps to understand what the different tradeoffs are between different sorts of plans rather than focussing on the financial impact alone. southwestwater.co.uk/waterfuture 15

16 South West Water Draft Water Resources Management Plan Bringing it together We do not expect to have a supply demand shortfall based on our most likely view of the future. However, all our Water Resource Zones have some medium to long-term sensitivity to increases in demand, extreme droughts or reductions in supply from environmental needs. Whilst we do not think it is appropriate for us to plan on a worst case scenario, doing nothing poses some risk to customers in the future. Customer research also showed a general preference to start early to mitigate risks. With risks on both the supply and demand side of our forecasts, we have brought all these factors together into a unified strategy with an underlying plan that balances the competing needs and pressures whilst remaining affordable and delivering a reliable service. Overall Water Resources Strategy Our overall proposed strategy for maintaining the balance between supply and demand is: Reduce leakage and the future demand for water this is consistent with the results that show leakage reduction as a good option for managing future risks. It also aligns to the wants of our customers and Government guidelines for water resource planning. Ensure availability of existing sources and their resilience to future droughts this is consistent with ensuring that we can mitigate future more extreme droughts and make best use of existing supplies. Develop our planning tools and understanding of future options this is consistent with managing future risks and improving our forecasting tools. It will ensure we are in a good position for future plans particularly in the event that demand savings are less than expected. Are there alternative strategies and plans? There are many different strategies and plans that could form our WRMP. In bringing the plan together we seek to find the best overall balance to plan for the future. The full details of the alternative plans can be seen in our main technical report. This three pillar strategy gives flexibility to manage future risks by tackling challenges on both the supply and demand side of our forecasts. In doing so it will make best use of existing resources which are already in our supply area and ensure we protect future generations by neither under or over providing. The attached Appendix gives details on the plans for each Resource Zone Did you know 16

17 Barnstaple Taunton 4. Bringing it together cont d Exeter The graphs below show our forecast supply demand balance on implementing the proposed strategy. It shows all our Water Resource Zones will remain in surplus for the whole planning period with some additional headroom to manage future risks. Colliford Zone final strategy Plymouth Truro Forecast demand and target headroom Supply capability (Water Available for Use, WAFU) Megalitres per day Megalitres per day Megalitres per day Roadford Zone final strategy Wimbleball Zone final strategy / /20 20/ / / / /45 Performance Score Base case Draft Plan 30 Base case Draft Plan 31 Base case Draft Plan 31 Score southwestwater.co.uk/waterfuture 17

18 South West Water Draft Water Resources Management Plan 4. Bringing it together cont d Short-term plan ( ) Combining the results of our analysis we propose a balanced plan for the next five years with small levels of activity in each of the strategic areas identified in each Water Resource Zone. The average performance score of this Plan is 30 to 31 vs for the base case with no intervention. The proposed Plan is: Reduce leakage and future demand for water Reduce leakage by 8% to 77 Ml/d reducing leakage by 8% will place South West Water at the Upper Quartile of leakage performance in the industry, and will help mitigate the future risks from demand growth. Reduce our consumption of water our sites use water for their day-today operation. We will reduce our use by 2.8 Ml/d. We will deliver this through non-potable re-use schemes at 5 large sewage treatment works. Help customers reduce their water use support customers through community based schemes and improved billing information to reduce their water consumption. We will also work with social housing organisations to help reduce water demand. We will target a per capita consumption to 128 l/p/day 3 to give Upper Quartile performance in the industry. We will continue to promote new water meters. However, meter penetration is already high and there is not much scope for further increases. We already have some advanced meters in our network and will continue to use these where appropriate. 3 l/p/day = litres per person per day Ensure availability of existing sources and their resilience to future droughts Investigate the resilience of existing drought management options to more extreme droughts a detailed test on the performance of our important emergency options that could be used in an extreme drought. This will ensure we have a better understanding of how they would operate against the more extreme droughts. Update our understanding of future drought impacts update our analysis on future drought impacts to gain a deeper understanding of how future droughts could affect supply and demand in our region. Develop our planning tools and understanding of future options High level feasibility study on a Roadford Pumped Storage scheme as the only strategic reservoir with no licensed pumped storage scheme in our region, this study would examine the feasibility of such an option in case leakage and demand management savings are less than expected. Develop our demand forecasting tool to take more account of future uncertainties this will help track and monitor our sensitivity to higher demands. Develop a new financial decision making tool to support the production of plans in 2025 this will help with decision making for future plans for managing risks from higher demand or more extreme droughts. Produce an annual outage report this will help improve our understanding of how resilient our system is to more extreme droughts. Increase understanding of demand management savings in drought conditions this will improve our understanding for developing future plans. Explore options for transfers with neighbouring companies continue a dialogue with neighbouring companies on opportunities for transfers. 18

19 4. Bringing it together cont d Medium to Long-term plan ( ) As our most likely view of the future shows we are forecast to be in surplus over the medium to long-term, we think it is important to keep the plan flexible and review again at our next update in However, there are some features we should continue to plan for: Reduce leakage and future demand for water Reduce leakage by a further 17% reduce leakage down to 64 Ml/d in the long term; over 20% lower than current levels. This is consistent with customers willingness to pay and our long-term aim. Continue to help customers reduce water consumption continued rollout of metering and water efficiency support to help customers reduce the demand for water. Ensure availability of existing sources and their resilience to future droughts Continue to ensure our assets can perform as needed during drought conditions. Develop our planning tools and understanding of future options Continue to develop risk based approaches to water resources planning. Continue to seek opportunities for water transfers between neighbouring companies. We have developed a plan that we consider gives best value overall taking into account a range of information about the future. In doing so it seeks to balance future risks by undertaking some activity now in order to protect the service to future generations with affordability and ensuring we don t plan on a worst case scenario resulting in customers paying for activity that they do not need to pay for. The activities in the Plan are flexible and could be adapted quickly and easily if the future changes. The Plan pushes our performance in a number of key areas and the proposed combination of activity will: Deliver Upper Quartile performance on leakage 4 Deliver Upper Quartile performance on per capita consumption 5 Improve our resilience against future more extreme droughts Promote water efficiency and metering Reduce the volume of water we take from the environment. There are lower or higher cost and performance plans. We could reduce leakage even further in the short term but this would lead to significant bill increases as shown in our assessing the choices work. As we have no forecast supply demand deficit, we could equally not undertake any new activity, however, this does not mitigate future uncertainties or meet customer, Government and regulatory objectives on areas such as leakage reduction. This Plan is considered to be the best overall balance to customers and the environment and will ensure that we continue to deliver a safe and reliable supply to customers for future generations. 4 in meters 3 per kilometer, based on 2016/17 data 5 in litres per person per day, based on 2016/17 data southwestwater.co.uk/waterfuture 19

20 South West Water Draft Water Resources Management Plan HAVE YOUR SAY Draft Water Resources Management Plan Consultation This document is a summary of our Draft Water Resources Management Plan (WRMP) The full Draft WRMP is available on our website. We welcome all feedback on our Draft WRMP. The delivery of a safe and reliable water supply is of vital importance to our customers, the environment and the economy of our region. We will use the feedback to develop our Final WRMP due for publication later in We will produce a formal statement of response explaining how we have addressed all comments received on the Draft WRMP and this will be available within 26 weeks from the publication of this draft. This consultation lasts for 12 weeks. Any feedback on the Draft WRMP should be sent as follows: By ing water.resources@defra.gsi.gov.uk with the title South West Water and Bournemouth Water s Water Resources Management Plan By writing to Secretary of State for Environment, Food & Rural Affairs (Defra) South West Water and Bournemouth Water s Water Resources Management Plan Consultation Water Resources Policy Department for Environment, Food & Rural Affairs Area 3D Nobel House 17 Smith Square London SW1P 3JR If you wish to send a copy of your feedback to Defra to us, please use the contact details opposite. The accompanying technical report for this plan can be found on the link above. 20

21 You can find out more about our future plans in the rest of our business in the following ways: By ing By visiting our WaterFuture website at By writing to us at FREEPOST WATERFUTURE

22 22 South West Water Draft Water Resources Management Plan

23 Appendix 1. Summary of Overall Plan 2. Colliford Water Resource Zone 3. Roadford Water Resource Zone 4. Wimbleball Water Resource Zone southwestwater.co.uk/waterfuture 23

24 South West Water Draft Water Resources Management Plan - Appendix Summary of Overall Plan Short-term plan ( ) Strategy Reduce leakage and the future demand for water Ensure availability of existing sources and their resilience to future droughts Develop our planning tools and understanding of future options Why Lowest cost options to manage future risks Consistent with customer preferences Consistent with Government and regulatory policy Consistent with ensuring that we can mitigate future more extreme droughts and make best use of existing supplies This is consistent with managing future risks and improving our forecasting tools. It will ensure we are in a good position for future plans particularly in the event that demand savings are less than expected Resources - Investigate the performance of existing drought schemes to more extreme droughts Update our understanding of future drought impacts High level feasibility study on Roadford Pumped Storage scheme and Porth drought scheme Undertake further studies on feasible water resource options for our next plan Leakage Reduce leakage by 8% to 77 Ml/d - - Demand Management Support customers to reduce average consumption to less than 128 l/p/d through community based schemes and improved bill information Promote water efficiency for nonhousehold tourist businesses Reduce our consumption of water at 5 large Sewage Treatment Works Increase understanding of potential demand management savings in drought conditions Continue to promote metering and replace out of life meters Continue to promote optant metering Transfers - - Continue dialogue with other companies on possible water transfers Other - - Develop uncertainty based demand forecasts Produce new financial decision making tool Produce annual outage report

25 Medium to Long-term plan ( ) Strategy Reduce leakage and the future demand for water Ensure availability of existing sources and their resilience to future droughts Develop our planning tools and understanding of future options Resources - Continue to ensure our assets can perform as needed in a drought As needed at next plan update in 2025 Leakage Reduce leakage by a further 17% to 64 Ml/d - - Demand Management Continue to promote water efficiency and metering - - Transfers - As needed at next plan update in 2025 Continue to seek opportunities for inter-company transfers Continue to develop risk based approaches southwestwater.co.uk/waterfuture 25

26 South West Water Draft Water Resources Management Plan - Appendix Colliford Water Resource Zone What does the future look like? Our most likely scenario does not predict any supply demand deficit. Baseline Forecast demand and target headroom Supply capability (Water Available for Use, WAFU) Megalitres per day / /20 20/ / / / /45 Understanding the options Robust in the short term but some small sensitivity long-term. No sensitivity Some sensitivity (less than 3% gap) Large sensitivity (more than 3% gap) Supply demand position against future scenarios Base case (most likely) Customer WTP Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% Household demand - high forecast Non-household demand - high forecast Assessing the choices Leakage and demand management feature as the lowest cost options. Performance Score Base case (most likely) Customer WTP Plausible droughts 1 in 200 year drought Resource only plan Demand only plan Environmental needs Leakage reporting methodology Financial Leakage reduced by 15% 25 Customers and affordability Deliverability Resilience Household demand - high forecast Non-household demand - high forecast 30 Markets and innovation Draft Plan 30 Score

27 Bringing it together Reduce leakage from 30.3 Ml/d to 27.7 Ml/d. 1 Demand management schemes: Community based water efficiency Barnstaple Taunton Social norms feedback with billing Social housing retrofit Tourism water efficiency Sewage Treatment Works water re-use Exeter Total demand management saving: 0.74 Ml/d Truro Plymouth Megalitres per day Final strategy Performance Total Performance score: 30 (vs for base case with no interventions) Per Capita Consumption: Industry Upper Quartile at company level Leakage: Industry Upper Quartile at company level Specific Colliford projects / /20 20/ / /35 Forecast demand and target headroom Supply capability (Water Available for Use, WAFU) 2039/ /45 Cambourne Sewage Treatment Works water re-use Drought scheme studies (e.g. Rialton intake/porth reservoir and Boswyn, Carwynnen and Cargenwyn) Studies on possible water resource options/optimisation for next WRMP review. 1 Our overall target will remain at a company level but we will use Resource Zone targets for internal planning southwestwater.co.uk/waterfuture 27

28 South West Water Draft Water Resources Management Plan - Appendix Roadford Water Resource Zone What does the future look like? Our most likely scenario does not predict any supply demand deficit. Baseline Forecast demand and target headroom Megalitres per day Supply capability (Water Available for Use, WAFU) / /20 20/ / / / /45 Understanding the options Robust in the short term but some small sensitivity medium to long-term. No sensitivity Some sensitivity (less than 3% gap) Large sensitivity (more than 3% gap) Supply demand position against future scenarios Base case (most likely) Customer WTP Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% Household demand - high forecast Non-household demand - high forecast Assessing the choices Leakage and demand management feature as the lowest cost options. Performance Score Base case (most likely) Customer WTP Plausible droughts 1 in 200 year drought 26 Resource only plan 29 Demand only plan 28 Environmental needs 28 Leakage reporting methodology 27 Financial Leakage reduced by 15% Customers and affordability Deliverability Resilience Household demand - high forecast Non-household demand - high forecast 29 Markets and innovation Draft Plan 31 Score

29 Bringing it together Leakage reduced from 42.3 Ml/d to 38.8 Ml/d. 2 Demand management schemes: Community based water efficiency Barnstaple Taunton Social norms feedback with billing Social housing retrofit Tourism water efficiency Sewage Treatment Works water re-use Exeter Total demand management saving: 3.2 Ml/d Truro Plymouth Megalitres per day Final strategy Performance Total Performance score: 31 (vs for base case with no interventions) Per Capita Consumption: Industry Upper Quartile at company level Leakage: Industry Upper Quartile at company level Specific Roadford projects / /20 20/ / / / /45 Up to 4 Sewage Treatment Works water re-use schemes to reduce our own water use Forecast demand and target headroom Supply capability (Water Available for Use, WAFU) Drought scheme studies (e.g. Roadford Reservoir pumped storage) 2 Our overall target will remain at a company level but we will use Resource Zone targets for internal planning southwestwater.co.uk/waterfuture 29

30 South West Water Draft Water Resources Management Plan - Appendix Wimbleball Water Resource Zone What does the future look like? Our most likely scenario does not predict any supply demand deficit. Baseline Forecast demand and target headroom Supply capability (Water Available for Use, WAFU) Megalitres per day / /20 20/ / / / /45 Understanding the options Robust in the short term but some small sensitivity long-term. No sensitivity Some sensitivity (less than 3% gap) Large sensitivity (more than 3% gap) Supply demand position against future scenarios 2016/ Base case (most likely) Customer WTP Resilience (plausible droughts) Resilience (1 in 200 year drought) Resource only plan Demand only plan Environmental needs Leakage reporting methodology Leakage reduced by 15% Household demand - high forecast Non-household demand - high forecast Assessing the choices Leakage and demand management feature as the lowest cost options. Performance Score Base case (most likely) Customer WTP Plausible droughts 1 in 200 year drought 26 Resource only plan 28 Demand only plan 25 Environmental needs 28 Leakage reporting methodology Financial Leakage reduced by 15% 26 Customers and affordability Deliverability Resilience Household demand - high forecast Non-household demand - high forecast 28 Markets and innovation Draft Plan 31 Score

31 Bringing it together Leakage reduced from 11.4 Ml/d to 10.5 Ml/d. 3 Demand management schemes: Community based water efficiency Barnstaple Taunton Social norms feedback with billing Social housing retrofit Tourism water efficiency Exeter Total demand management saving: 0.53 Ml/d Truro Plymouth Megalitres per day Final strategy Performance Total Performance score: 31 (vs for base case with no interventions) Per Capita Consumption: Industry Upper Quartile at company level Leakage: Industry Upper Quartile at company level Specific Wimbleball projects / /20 20/ /30 Forecast demand and target headroom 2034/ / /45 Studies on possible water resource options/optimisation for next WRMP review (e.g. Pynes Water Treatment Works intake review) Supply capability (Water Available for Use, WAFU) 3 Our overall target will remain at a company level but we will use Resource Zone targets for internal planning southwestwater.co.uk/waterfuture 31

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