29/11/2010

Water companies win right to keep pollution secret


Photo source: Sunday Times
In an important tribunal ruling this last week the water companies won their appeal that they are exempt from the environmental information regulations on sewage and pollution. This means they don’t have to disclose details of pollution incidents in their region.
The right to know or the right to keep private information is a challenging and difficult area for the water companies. It revolves around the public’s perception of whether the water companies are truly private companies or managing water on behalf of the state. It also sits uneasily with the Corporate Responsibility Statements of the water companies.

The root issue is the continuing problems with unsatisfactory intermittent discharges (CSO’s). There is no doubt that the UK’s aging sewage network is increasing overloaded and needs massive investment to reduce the frequency of spillage of untreated sewage into water courses and the sea. But its an area the water companies would rather move slowly on given the huge investment implications and impact on customer bills. Lined up against them are powerful voices such as the Sunday Times with its water rats campaign and the BBC Panorama programme.  Driving this is the rapid growth in water contact sports like surfing and the increasing number of influential opinion makers participating in water sports.
Lessons from other industries suggest that trying to prevent disclosure of information is not a tenable long term position. Better to start an informed  debate now about what can be done, what it would cost and how much we can afford to spend. 

26/11/2010

Further consolidation in water sector

Photo source: Paul Hipwell
Biwater Holdings has announced that it has agreed the sale of its subsidiary Biwater Services to MWH Contractors. This follows on from the consolidation into one group, Ovivo, of Emico Water Technologies, Enviroquip and Christ Water Technology.
Given the tight margins and depressed volume of work further consolidation amongst suppliers looks inevitable. The real concern for the water industry is how to stimulate R & D. The water companies are looking to suppliers to innovate yet spending by suppliers on R & D is declining. It is only the French water conglomerates like Veolia who still spend significantly on research.
What innovation that is coming has mostly been developed in other industry sectors. The challenge for the water industry is to find a way to encourage more innovation, this must mean rewarding suppliers and creating an environment where risk taking is encouraged (no innovation is without risk). Neither is likely to happen. 

22/11/2010

Wastewater National Policy Statements consultation


Photo source: Thames Water Abbey Mills discharge 
Consultation has started on the National Policy Statements (NPS) for wastewater. This document sets out the criteria with which the Infrastructure Planning Commission and its successor the Major Infrastructure Planning Unit (MIPU) will use to judge whether major wastewater projects should be approved. As this blog predicted the NPS specifically covers the Thames Tideway Tunnel and Deepham Sewage Treatment Works.

The last Government brought in a totally new ‘fast track’ planning process for major infrastructure projects (2008 Planning Act), and the National Policy Statements are an important element of this process. The Government has made clear that they envisage a seemless transition from the IPC to the MIPU and that the NPS will still apply.

The consultation process announced by DEFRA is an important opportunity to comment on whether the NPS are fit for purpose and provide an adequate framework for the IPC to judge whether major wastewater projects should be approved.  The concern has to be that interested groups will not appreciate how important these documents are and that once agreed then the rules are effectively set in stone and can’t easily be altered. 

15/11/2010

Managing risk of water supply failure

Photo source: Ofwat
Extreme weather events such as the 2007 Gloucestershire floods led to the flooding of many water and sewerage assets and left 350 000 consumers without water supplies for 16 days. It brought into sharp relief the threat to our normal way of life that extreme weather events pose. Since then there has been significant investment in ‘resilience’ reducing the risk of service disruption.
Ofwat’s latest focus report on resilience is to be welcomed. Its central argument is that risk should be looked at not in terms of asset failure but on the effect on service to people. Taking a customer based approach has to be right. Who cares if a critical pump fails provided the water supply can still be maintained from another source? 

12/11/2010

Organic wastewater to energy

Photo source: Thames Water 
There is a quiet revolution going on in the water industry. The advent of carbon credits, feed in tarrifs and a sustainable approach is changing the economics and stimulating the rapid growth in energy from wastewater plants.
Two announcements this week highlight the change. Thames Water are now exporting biogas (methane) from its Didcot sewage works into the gas network.  While in Yorkshire an Archimedes screw and an ABB motor and variable speed drive operating as a generator is enabling electricity to be generated from the hydraulic head available.
Neither of these examples are using revolutionary technology – Archimedes screws date back to the Romans.  What has changed is the mindset. Thinking holistically about the potential energy generation as well as the wastewater process is the key. It requires a multidisciplinary approach and thinking of wastewater as a resource, full of potential energy, bioenergy and biomaterial.

Organic wastewater to energy


Photo source: Thames Water 
There is a quiet revolution going on in the water industry. The advent of carbon credits, feed in tarrifs and a sustainable approach is changing the economics and stimulating the rapid growth in energy from wastewater plants.
Two announcements this week highlight the change. Thames Water are now exporting biogas (methane) from its Didcot sewage works into the gas network.  While in Yorkshire an Archimedes screw and an ABB motor and variable speed drive operating as a generator is enabling electricity to be generated from the hydraulic head available.
Neither of these examples are using revolutionary technology – Archimedes screws date back to the Romans.  What has change is the mindset. Thinking holistically about the potential energy generation as well as the wastewater process is the key. It requires a multidisciplinary approach and thinking of wastewater as a resource, full of potential energy, bioenergy and biomaterial.

08/11/2010

Sustainable Water - ensuring it is affordable


Photo source: Ofwat
Water is something that is free but you still have to pay for it and its something everybody needs every day but no-one can chose where or who to get it from. That’s the view of George Day Ofwat Director of future charging and it is the dilemma facing Ofwat as it develops its strategy for future water charging.
The facts are stark. For over 20% of Southern Water’s customers the water bill takes over 3% of their household income. Yet Southern Water is about to implement its Universal Metering Programme that will see water bills go up by over £100 for 50% of its customers. How will this help affordability, especially in these tough economic times? This is likely to be very difficult to sell to customers. The water industry needs to think like a business and be very clear on what benefit customers will see for this increase in their bills.
With the Universal metering programme there is a real risk that customers will be cynical about the motivation for metering and whether it really is in their best interest. What clear benefits will customers see for the extra £100? Southern Water will need to do an exceptional job in selling the benefits if it is not to create a customer backlash and problems for all in the industry.

01/11/2010

Water leakage targets missed


Photo source: Thames Water
News from Ofwat that more than a quarter of all water companies failed to meet their leakage targets last year will add to the pressure to improve performance. Yorkshire under performed by a massive 7.3 % and Southern and Northumbrian also missed their targets.
Ofwat is threatening tough action to force compliance. There is no doubt that last years hard winter made the situation much more difficult. However hitting leakage targets is also becoming more difficult for several reasons especially:
  • o   The use of more plastic pipework
  • o   An increasing 24/7 lifestyle and multi occupancy houses
  • o   The aging water distribution network

All the trends are going the wrong way on leakage and meeting the every tighter leakage targets is becoming significantly more difficult. Water companies are trying new technologies but are not keeping pace with a toughening climate.