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Tuesday 23 August 2022 6:30 am  |  Updated:  Monday 22 August 2022 4:49 pm

Leaky pipes, raw sewage and blame shifting. Water firms need to wake up

By: Elena Siniscalco

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Extreme weather could cause global economic losses of £4 trillion
Extreme weather could cause global economic losses of £4 trillion

There has been much talk about 1976 these days. During that summer the UK experienced a severe heatwave with grave droughts. People had to resort to standpipes on the streets to get water. Kids had to bathe in the same water used by their siblings, as reservoirs dried up.

Luckily, today we have a better infrastructure to deal with what’s proven, some 46 years later, to be another challenging summer. River flows are exceptionally low across England and “reservoir levels are falling across Yorkshire, central and southwest England”, said a spokesperson for the Environment Agency.

The water industry was privatised in the early 1990s. Since then, it has been able to invest in resilience. Each water company has a plan in place – approved by the Environment Agency – for when a crisis strikes. The hosepipe bans we’re seeing across the country are evidence of those measures kicking in.

Both ministers and companies have insitered there is no risk to public water supplies. But that’s no reason for complacency.

Our infrastructure is old and leaky, and not a single new reservoir has been built since 1991. Last year, we lost 1tn of water thanks to leaky pipes. By 2050, the amount of water available could be reduced by 10 or 15 per cent, with some rivers seeing a 50 to 80 per cent decrease in their level of water during summer. At the same time, our population is growing, as the impact of climate change heightens.

Environment Secretary George Eustice has suggested perhaps it’s time for a national water grid, similar to what we have in the energy sector. His vision is huge pipelines connecting reservoirs in higher rainfall areas to those at grave risk of drought. Water from the West to the East, from the North to the South. Calls for a renationalisation of the water industry are abundant.

The idea of water transfers is a familiar concept in the industry. But Eustice’s comprehensive proposal would take years to realise, and comes with its own problems. Water is hard to transport and the financial cost of doing so is high. “In an emergency it could be a possible option, but it’s not a longer-term viable option”, says Stephanie Hurry, head of Water Efficiency Engagement at WaterWise. It would also be a difficult task to bring together the different private water boards under one umbrella.

A shakeup is needed in the water industry – both to fix what’s broken and to ensure we’re prepared for the future. But instead of renationalisation as a sticking plaster in the midst of a crisis, we should look at strengthening the role of the water regulator, Ofwat. Water companies have failed on a host of issues – be that leaks control or the infamous pollution incidents. In 2019, the regulator estimated that around 21 per cent of water put into public supply each day is lost through leaks on water pipes. Yet Ofwat’s response has been lukewarm at best. At worst, they’ve been accused of being “apologists” for the water companies.

Water is not a commodity like any other – it’s a common good, upon which our health and that of the environment around us depends. But if water companies themselves don’t believe this, it’s hard for customers to buy into the narrative – and actively change their lifestyle to consume less of this good. Imagine trying to tell people to have shorter showers while leaving your own taps running all day.

Nationalising the water sector now would be “a distraction” according to Jason Knights, Managing Director of Ground Control. Much could be achieved by stricter control of the companies’ actions, a change in the way we approach an increasingly scarce resource in high demand, and a focus on preserving our wetlands and biodiversity.

Laser-focused government policy should also play a role. According to Stuart Colville, Water UK’s Director of Policy, we should start by tightening building regulations so we stop building new homes with leaky pipes.

Activists say we need water wastage to become as socially unacceptable as throwing plastic in the oceans or blowing smoke in the face of a baby. This won’t be possible unless companies start taking responsibility, improving efficiency and getting penalised by the regulator when they don’t.

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