‘Failure is a part of great ambition on the path to net zero’

As part of our Countdown to COP campaign, Utility Week speaks to Iain McGuffog, director of strategy & regulation at Bristol Water. He discusses the importance of a community-led approach to reaching net zero, opportunities under Brexit and why some failures will be inevitable if ambition and innovation are truly stretching.

What opportunities does COP26 represent for the utilities sector, and how can we capitalise on them?

There is a huge increase in public awareness of the climate challenge and we have all shown willingness to change our shared behaviours in the face of a global pandemic.  COP26 throws a worldwide spotlight on the opportunity to develop our plans for how we deliver services fit for the future, both in terms of resilience and in sustainable delivery.

Bristol was the first city council to declare a climate emergency, and Bristol Water was the first utility to set out its social purpose and social contract. So not surprisingly our route to net zero includes working out how to reduce the energy we use in supplying water, but also takes a local community led approach as part of our social contract initiatives.

What does the UK need to achieve in the next nine months to present itself as a world leader in tackling climate change? What role can utilities play in that?

There is a significant change under way in the UK through Brexit. While this can be seen largely as a risk, it also gives an opportunity to change the direction we take as a country in our common commitment to carbon capture through new approaches to land use such as promotion of tree-planting, catchment protection and re-wetting of historic wetlands. Utilities, working with landholders in the areas they serve, are uniquely well-positioned to bring a joined-up approach to the benefits of these changes.

Where do you see further opportunities for pan-utilities co-operation on the path to decarbonisation?

Utility companies will need to work more closely together to identify and deliver shared benefits for their customers and the environment. These partnership approaches  – for instance, with water and energy companies working in collaboration with local communities – can help customers to identify far greater savings and carbon reductions than can be achieved if the utilities work in isolation, focusing on their own aspects of service delivery.

So, COP26 provides an opportunity for utilities to work with local stakeholders to tackle the climate challenge. We’ve established Resource West – a partnership of local stakeholders to coordinate resource efficiency activities and messages to consumers, across water, energy and waste. A trial in North Bristol will make the link to climate and the environment.

What is your principal ask of government and/or regulators to unlock the sector’s potential to accelerate the green transition?

Meeting the challenges of the future will require new mindsets and approaches. This inevitably brings a risk of failure – and indeed, if we do not have projects that fail this will be the clearest indication possible that we haven’t been ambitious enough. We ask our regulators and government to recognise this and to recognise that spending customers’ money on projects that do not all deliver their desired outcomes is not a sign of bad planning: it can be an indicator of ambition and innovation.

We are hopeful that Ofwat’s innovation fund provides an opportunity for local water companies to work together with others to push our ambitions on.

How can utilities help to encourage all consumers to be more active participants in the net-zero journey?

Utilities are unique in that they are “present” in customers’ homes every day. That daily interaction means that utilities develop a more community-based insight into the behaviour of consumers and how these behaviours can be encouraged in a positive direction. By working together to give consumers an understanding of the real power they hold over the impact of their behaviours, both in the local and global environment, utilities and consumers can become partners in delivering a better future.

Education of current and future consumers is a key to more active participation on the net-zero journey. We also need education to get the skills and green growth needed to reach our ambitions. We have launched the Bristol Water Foundation, a learning and careers hub with over 50 free resources, and practical guidance and support as to how to save water, plastic and contribute to the climate challenge.