by Michael Smith (Veshengro)
The Chartered Institution of Water and Environmental Management (CIWEM) believes that the water industry needs to undergo a fundamental change in regulation and broaden its scope to move towards sustainability.
The UK water industry has benefitted in recent years from high levels of investment leading to significant improvements in water quality. However, there has been little groundbreaking technology in water treatment and supply, or in demand management.
At a CIWEM conference in February 2010, 87 percent of delegates supported a comprehensive review of the financial regulation of water to encourage innovation, to incentivise water conservation, to integrate water management with environmental policy and legislation, and to address future challenges. Nearly all agreed that innovation is not supported effectively. The take-up of innovation by the industry is a matter of particular concern.
In some industries, competition can encourage innovation. However, the nature of water regulation, inertia within those in the industry and the industry’s structure makes this unlikely as it is difficult for new processes to be approved and implemented. Furthermore, CIWEM believes that increased competition will only add to the current problems of companies not charging customers for the true value of water.
CIWEM urges government to encourage greater innovation by increasing the incentives for outperformance and addressing the potential bias to capital expenditure. Companies who over-perform against their environmental targets should not be penalised for failing to meet their economic targets. CIWEM would also like to see Ofwat given responsibilities for promoting the delivery of integrated water, wastewater and environmental services, not just water and wastewater services.
Other necessary changes include the development of a research and development body to ensure an innovative, integrated approach to water management; improved co-ordination across regulators; and investigation into more flexible approaches to regulation by looking to examples of good practice in other places (e.g. Australia ) and in other sectors.
CIWEM’s Director of Policy, Justin Taberham, says: “It is clear that current financial regulation models for the water industry are ill equipped to deal with issues that have come to the fore, including sustainability, climate change, carbon accounting and resource efficiency. Current regulatory models are not seen as fit for purpose and have significant flaws including inflexibility and a ‘boom and bust’ business and asset management cycle. They do not encourage engagement with the public, stall innovation and are price rather than sustainability driven.”
The use and especially overuse and abuse of water in industry, businesses, institutions and homes is of great concern and also, more than likely, is a factor, not just for dwindling water resources, but of sea level rises.
Every time that the loo is being flushed some two gallons, at least, perfectly good water is being sent down the drain, literally, and where does that water, which is fresh water, go? Primarily via rivers to the sea even though it may – or may not – go through a sewage treatment plant before that.
What used to be a working cycle, the so-called water cycle, no longer functions today and not enough water returns to the land to replenish aquifers, reservoirs and springs, because we use more than we get back, and too much water remains in the seas.
Despite the fact that everyone is being told again and again that we must preserve and conserve water still too many – individuals, businesses and institutions – continue as is without any thought for the future. This could turn and bite us in the behind rather seriously.
Oil is and was a substance that wars were and are being fought over; water is the next reason for serious wars. Therefore water conservation is a must, for all.
Copyright © 2010
