Sustainable water – meeting society’s needs Are regulators agents of social change, and what are the implications of the equality and human rights agenda? Sue Cox 15 December 2009 Protecting consumers, promoting value, safeguarding the future

Economic regulator of the water and sewerage sectors in England and Wales Small non-ministerial government department set up when the companies were privatised Independent of government and the water companies, but accountable to Parliament and the Welsh Assembly Government Our aim: protect consumers, promote value and safeguard the future Who we are Protecting consumers, promoting value, safeguarding the future

Climate change Population growth Customer expectations Future challenges Protecting consumers, promoting value, safeguarding the future

Water stress Growing UK population – predicted to reach 72 million by 2033 and become biggest in EU by 2050 Much growth will take place in south-east – already the driest part Climate change could alter seasonal reliability of weather Areas of relative water stress (EA and Defra) Protecting consumers, promoting value, safeguarding the future

The three key aspects of sustainable development Environment Social Economic Sustainable Protecting consumers, promoting value, safeguarding the future

Ofwat’s approach 1. A safe and reliable water and sewerage service for consumers that minimises the impact on the environment now and in the future 2. Consumers continue to get a fair deal and receive a level of service that consistently meets their needs 3. Financially robust sectors that are able to meet consumer’s needs a fair cost, into the future 5. Using the best available information to support decision making 4. Companies that remain accountable to their consumers Protecting consumers, promoting value, safeguarding the future

Harnessing market forces and valuing water Making monopolies improve Projects looking at: Markets and customer choice Sustainable drainage Metering and charging Best practice regulation Protecting consumers, promoting value, safeguarding the future What we are doing

Environmental improvement Who pays and how much? Carbon impacts Sustainable consumption Price signals v affordability Customer choice v protection for the vulnerable Role of regulator Strategic/political decisions or advice and implementation? Protecting consumers, promoting value, safeguarding the future Issues to consider “I welcome the publication of Anna Walker’s excellent report. We will consider her recommendations carefully ahead of a full public consultation. Meanwhile, in line with the specific recommendations for the South West Water area, we will ask Ofwat to consider the options for dealing with the high water bills there which have resulted from the original privatisation, and to advise Ministers accordingly.” Huw Irranca-Davies, Environment Minister