Ofwat, the water regulator, has announced a ground-breaking £100 million campaign aimed at encouraging households and businesses to reduce water usage.
David Black, Ofwat’s Chief Executive, informed MPs that the funding for this campaign would be drawn from customers’ bills. He emphasized that if successful, this initiative would be a more cost-effective solution than constructing new major water supply sources.
The move comes as water companies face mounting pressure to address both demand reduction and leakages, driven by concerns about the impact of climate change and population growth on water reserves in the years ahead. England and Wales currently consume an estimated 14 billion litres of water daily, a figure projected to increase by at least four billion litres by 2050.
In July, Ofwat had initially revealed plans for the £100 million fund, which will operate concurrently with other infrastructure spending projects. Mr. Black, speaking before the public accounts committee, expressed the need for the water sector to meet challenging targets set by the government. He pointed out the lack of progress in the current and previous periods and stressed the importance of addressing water demand.
“We’re establishing a fund of £100 million for the next price review period, which will be from customers, to help the sector get to a much better place on water demand,” said Mr. Black. He further highlighted the cost-effectiveness of demand reduction compared to the alternatives of constructing major new water supply sources, such as a reservoir, which could entail expenses exceeding £2 billion.
This initiative underscores a strategic shift towards proactive demand management in the water sector, acknowledging the significance of conservation efforts in the face of growing challenges.
