Water firms urged to step up emissions ambitions for PR24

Ofwat has called on water companies to make “greater and more rapid progress” on lowering greenhouse gas emissions by setting themselves bespoke performance commitments for the 2025-30 period.

The regulator had previously indicated a common performance commitment may be used, however it now says that due to differences in recoding and reporting systems bespoke commitments would be more appropriate.

It welcomed the proposed commitments companies have made ahead of business plans for PR24 being published in October but said more was required.

“We want to see the sector make greater and more rapid progress in this area. Therefore, we strongly encourage more companies to come forward with bespoke performance commitments focused on incentivising reductions in embedded greenhouse gas emissions,” Ofwat said in its assessment of performance commitments.

The assessment sets out that any proposed performance commitments should incentivise emissions reduction. It calls for targeted approaches linked to external verification and accreditation standards

South West Water proposed a measure relating to embodied emissions, which Ofwat said was potentially suitable. It was however one of just seven bespoke targets the regulator said had the potential to go forward. Another 35 proposed by 10 companies were deemed unsuitable, some of which shared too much overlap with existing commitments or could be included within common targets rather than bespoke, according to Ofwat.

Proposals it said have the potential to be suitable include abstraction incentive mechanisms by Southern and Affinity; low carbon concrete from Anglian; street work collaboration from Thames; water softening target by SES; and average time properties experience low water pressure by Affinity.

The deadline for submissions is just two months away when plans will be simultaneously published publicly.