Water sector confronts ‘profound challenges’ with new vision

Increased pressure and “profound challenges” have prompted the water industry, regulators and the government to come together to create an “ambitious vision” for the future.

Organisations from all parts of the water sector are joining forces today (2 May) to develop a long-term view to guide the industry towards having the “most positive impact possible” on society and the environment.

The sector has engaged with customers and stakeholders to produce its draft joint vision and three common themes have emerged from the discussions.

The first is the importance of the sector delivering “everyday excellence”, the second is long-term stewardship of the environment, assets and relationships with customers and the third is “adding value”.

The vision outlines that “adding value” means value for money as well as adding value to communities and the environment.

Alongside the joint vision, Ofwat has published its own draft strategy to engage on how an ambitious new direction may be delivered.

The sector is working together to confront “profound challenges” such as climate change, population growth, increased demand and greater customer expectations.

In recent years the sector has found itself under increased scrutiny and has been challenged to prove it is doing the right things for customers and the environment.

And Labour has lined up water as the first industry it would bring back into public ownership should the party return to power.

The water sector says to meet the long-term challenges it faces and to shape a positive future for customers, it wants to develop a clear, common vision which all parties in the industry will work to achieve.

It aims to restore public trust by “acting in the right way”.

The move has been coordinated by regulators, government, industry and the consumer body.

Ofwat chief executive Rachel Fletcher said: “The challenges the sector faces are profound. But if we work together and show real ambition, we can make a meaningful and lasting difference to customers, the environment and society and, in doing so, make our children’s generation proud and become an industry others look to for inspiration. I’m looking forward to all parties joining forces so we can get cracking to agree and deliver a better future.”

The water sector is inviting feedback to its draft vision to help it shape the new vision which it aims to unveil in the autumn.

What other involved parties say:

Environment minister, Thérèse Coffey: “It is crucial that the water sector works together to develop a collective vision and to set out the necessary priorities for a water industry that works for everyone. We want this shared vision to focus on delivering the best services and value for money for customers alongside protecting and enhancing the natural environment both now and in the long-term. I look forward to working closely with regulators to achieve this.”

Water UK chief executive, Michael Roberts: “We all need to work together – companies, customers, regulators, policymakers and stakeholders – to deliver a flourishing future for water. Public policy needs to walk in step with public expectations, and industry needs to work in harmony with the environment and the communities they operate in. Leadership from water companies in representing the best in responsible business practice is essential, which is why we published our Public Interest Commitment recently, reinforcing our determination to put the public interest at the heart of everything we do. We look forward to making that commitment a reality, as an integral part of a new vision for the water sector.”

Environment Agency chief executive, Sir James Bevan: “The water industry plays a vital role in providing clean and plentiful water for people and the environment. It also faces significant challenges from climate change and population growth which must be met while improving the environment for future generations. Together with government and other regulators we will encourage water companies to be more bold and strategic to meet these challenges.”

Drinking Water Inspectorate chief inspector, Marcus Rink: “Our drinking water quality is amongst the best in the world. The delivery of a balanced set of strategic objectives for both England and Wales must build on those areas which are already excellent, enhance those areas which require attention and deliver a visionary and deliverable plan to address future challenges. I look forward to shaping collective responsibility, defining the sector’s social purpose and promoting the health and wellbeing of our communities.”

Consumer Council for Water chief executive, Tony Smith: “There is no escaping the enormous challenges facing the water sector which we will only overcome if everyone is pulling in the same direction, towards a common vision. Many people don’t feel they get a fair deal from their water company but the industry can begin to change this by building a stronger bond with their customers and striving for excellence in everything they do. Companies also need to show they can be trusted as stewards of our water resources for current and future generations. The sector cannot afford to fail consumers or the environment.”

Read Rachel Fletcher’s exclusive piece for Utility Week on the vision for water here.