Water Scarcity Annual Stakeholder Review breakout session
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1 Water Scarcity Annual Stakeholder Review breakout session 7 November 2016 Bob Collington OBE Managing Director, Water
2 Water scarcity breakout session. Agenda: 1. Introduction from Bob Collington, Managing Director for Water 2. Your views activity run by Britain Thinks 3. Our customer s views a summary 4. Q&A 2
3 Our area. 3
4 Supply and demand gap. Historical droughts
5 Enabling growth. The next high growth areas in London London s identified growth areas could accommodate an additional 1 million people.
6 Drought Plan. Sets out the actions required to maintain essential supplies and protect the environment. Tactical plan of how to operate sources during a drought. Includes all potential options that may be used during a drought. 6
7 Future droughts. We could return to past situation of dry rivers 7
8 Engaging with customers. 8
9 The planning process How do we plan for the future? Ben Shimshon Britain Thinks 9
10 Planning for the future. Thames Water is responsible for ensuring there is enough water to go round in the future. Every 5 years, Thames Water is required by law to produce a Water Resources Management Plan Thames Water does other plans to improve service levels This plan sets out how Thames Water intends to make sure there is enough water in supply to meet demand over the next 25 years and beyond Thames Water is beginning to work on its Water Resources Management Plan for the period The plan will be the outcome of a long planning process (of which this workshop is one part!) It will set out the options Thames Water recommends in order to secure enough water for the next 25 years and beyond Once this plan has been completed (in 2018) it is submitted to the Department for Environment, Food and Rural Affairs (Defra) Defra will only approve a plan which addresses any potential deficit in water supply 10
11 The planning process.
12 The assessment criteria. Cost Resilience Negative environmental impact Positive environmental impact Adaptability Sustainability Deliverability Acceptability
13 Cost. How much will the programme cost? Including all capital expenditure to construct/implement the programme ( ) Including all the operating costs for the day-to-day running and management of the different options that make up the programme ( / Ml / day) A great deal of work will be done by Thames Water to work out the cost of potential programmes of options and the impact this could have on customers bills
14 Cost contd. How Thames Water pays for the options in the programme. Thames Water will take out a big investment to pay for the different options in its Water Resources Management Plan Customer pay for the options in their water bills over a very long period of time - usually however long the option lasts 14
15 Resilience. Is the programme strong enough to withstand challenges? Will it stand up to more severe droughts? Severe floods? Failure of important operational works or machinery? Major pollution of a water source? A combination of the above?
16 Positive or negative environmental impact. What benefits or disadvantages will the programme have for the environment? For example, will it be good or harmful for wildlife? Thames Water has a legal obligation to meet environmental regulations including its impact on wildlife, rivers, landscape, air quality, and archaeology and heritage Options are rejected if they cannot meet required environmental standards.
17 Adaptability. Is the programme flexible enough to be adapted to changes in the future? This criteria applies to the whole programme, not just specific parts of it Forecasts that can change include the impacts of changes in climate, population, legislation or prices. Thames Water makes a new plan every 5 years because these forecasts change
18 Sustainability. Will the programme deliver a sustainable, secure and reliable water supply up to and beyond the next 25 years? Doing even more to reduce unsustainable demand (leakage reduction, metering, water efficiency) Use low carbon, low material/chemical intensive technologies Ensure fair investment for future generations as well as our own
19 Deliverability. How confident is Thames Water that the programme will work in the way that it hopes it will? Is there a possibility that the cost could increase/decrease? Will it be built/implemented in the time expected? Will it deliver the amount of water required? Where Thames Water has delivered similar programmes/options in the past, there is greater certainty about the cost, the amount of time it will take to build and the amount of water it will deliver. If the programme contains options that have not been tried before, there is less certainty about these things
20 Acceptability. Does it meet the needs and preferences of Thames Water customers? By reflecting the importance that customers place on planning for a resilient water supply Understanding what customers think about the different options available and their preferred plan And does the programme meet requirements set out by Government? This includes Government guidance and expectations, for example, collaboration and the need to consider resources across the wider region
21 Table discussion. What do you think of the different criteria? Are any more or less important to you? 25 minutes 21
22 Customer Views Findings from our previous research Ben Shimshon Britain Thinks 22
23 Customers thought considering a range of criteria is preferable to focussing on just one or two Cost Deliverability Sustainability Environment Resilience Acceptability Adaptability Solution must be affordable for Thames Water, but this is especially crucial as it impacts the customers directly through their bills. Customers feel that any investment must be proven to work, as tried and tested projects are least likely to waste money, and most likely to be effective. Sense that this is a long term problem which needs a long term solution. Being sustainable will also save on future costs. Customers want to minimise negative environmental effects, and where possible provide environmental benefits for example through the eco-system of a reservoir. Resilience matters as the future is unpredictable. Water stress is only going to get worse over time, so Thames Water must plan for contingencies. Thames water ought to consult with and reassure customers, especially as there is no competition in their sector but not at the expense of other performancerelated criteria. A system which isn t adaptable will incur costs when circumstances change. This is elided into sustainability and resilience by customers, which may account for its lower importance. Most Important High Importance Moderate Importance
24 Q&A Bob Collington OBE Managing Director, Water 24
25 What are they 25
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