The case for water allocation reform in England and Wales February - - PowerPoint PPT Presentation

The case for water allocation reform in England and Wales

February 2014 Ian Barker: Head of Water Land and Biodiversity

Water abstraction

Around 38,000 million litres abstracted per day Used for a wide range of purposes Current system set up in 1960s

Protects abstractors’ rights Has been adapted to provide environmental protection Run by Environment Agency and Natural Resources Wales

Why reform and why now?

Resources already under pressure Climate change will affect flow patterns Population growth will increase demand Current system is not flexible enough to cope with the changing demands on water resources

Problems with the current system

Problem Possible solutions Abstraction is not closely linked to water availability / flows Link abstraction to availability rather than season, improve allocation of peaks and protect low flows Charging does not discourage waste Introduce a charging system that reflects usage Some people have more than they need and others have less than they need Make it easier for abstractors to trade with each other The approach to changing licences is inconsistent and slow Clear and consistent approach to changing licences

Overview of proposals

Current system Current system plus No more seasonal licences Easier trading Charging for water used More flexible abstraction limits No time limits Scope to abstract more at high flows Water shares No more seasonal licences Easier trading Charging for water use More flexible abstraction limits No time limits Scope to abstract more at high flows Wider range

• f trades

possible Potentially more adaptive Easier to tailor access to needs Shorter term trading

Why trading?

A farmer planning annual cropping may realise he doesn’t need all his water for the coming year so temporarily shares part of his annual allocation

A water company has invested in new resources to meet demand over the next 25 years and initially has extra water resources that they could share temporarily when flows are low

A number of farmers jointly invest in a reservoir and some of them don’t need their share for a season. Those farmers can release the water for use downstream

A coal powered electricity generating plant is not

• perating for a period due to the price of coal so the
• perator has access to water they can sell

Trading now and after reform

Current system After reform Abstractors have to find willing trading partners themselves A bulletin board will help match potential buyers and sellers Each proposed trade requires individual approval Some simple trades can be pre- approved (particularly temporary trades). Simpler administrative approach Some catchments are over licensed so trading is restricted to the amount used Over licensing to be managed when moving to the new system

Water Bill and upstream reform

The Water Bill will make it easier for new businesses to enter the water market through upstream reform Upstream activities are defined below and represent roughly 90% of the cost of providing sewerage and water services

Water Bill and upstream reform

Upstream reform will help

develop new water sources increase water efficiency measures and water reuse Introduce innovative ways of managing wastewater and sewage sludge

Incentives for innovation will apply to both new and incumbent water operators This innovation could help water users adapt to changing water availability by providing new water management services An abstraction management system that supports trading and clearly defines access to water will support competition and innovation

Summary

We need to reform the abstraction management system to meet future challenges Government are currently consulting on three

• ptions for reform, Making the most of every drop

Reforms are aiming, amongst other things, to support water trading The Water Bill includes upstream reform which aims to increase innovation in the water sector This, combined with abstraction reform, could see the role of the water industry change over time