Policy And Regulation Updates

Aqua Europa Monitoring Reports

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Drinking Water Quality

US Limits PFAS In Drinking Water - The US Environmental Protection Agency (EPA) has set legally enforceable maximum standards for a set of six PFAS compounds – per- and polyfluoroalkyl substances, which are linked to a wide range of severe health conditions. The EPA set legally required maximum contaminant levels of 4 nanograms per litre (ng/l) for each of the two most common PFAS, knowns as PFOS and PFOA. It also set a maximum level of 10ng/l for three other PFAS compounds as well as levels for PFAS mixtures. The move could have global consequences as other governments and water quality regulators including in the UK come under pressure to follow suit. 

PR24

Thames Submits £20bn AMP8 Business Plan - Thames Water has announced it has submitted an updated PR24 business plan to Ofwat, which takes the £18.7bn of totex proposed in October 2023 to £19.8bn. The extra £1.1bn investment would “be directed to projects benefiting the environment,” the company said. 

 However “a rebalancing of operating and capital expenditures means there is no resulting increase in projected customer bills, which are estimated on average to be £608 by 2030”.

The updated plan also proposed £1.9bn of potential investment, to be placed in a ‘Deliverability Assessment Mechanism’ and released conditionally. If allowed, that would add a further £19 to bills over AMP8.

The company’s negotiations over its 2025-30 programme continue amid a public debate over its future. Ofwat will pubish draft PR24 determinations public on 12 June.

Developer Services Functions Cut From Price Controls- Ofwat has removed certain developer services from the upcoming price control, in line with its PR24 methodology.  
Network reinforcement work remains in, but some site specific services where incumbents compete with new appointments and variations and self-lay providers – such as new connections – have been removed to boost competition. Revenue from them will be excluded from the controls. 
The regulator has modified water company licences accordingly, effective from 12 June.

Pollution

Plastic Wet Wipes To Be Banned - The governments of the UK, Wales, Scotland and Northern Ireland have confirmed they will ban the supply and sale of wet wipes containing plastic by the end of the year. As well as preventing sewer blockages, the ban will reduce litter and microplastics entering waterways.
Each administration will act separately, and there will be an 18-month transition period in each case. UK manufacturers will continue to be able to produce wipes containing plastic for export. Exemptions will be made in the UK for medical and industrial purposes. The governments said 95% of respondents to the October consultation supported the action. 

Water Restoration Fund opens - Defra has opened a new Water Restoration Fund, which will ring fence fines and penalties levied on water companies for local nature restoration. £11m of penalties incurred by five companies (Anglian, South West Water, Thames, United Utilities and Yorkshire) since April 2022 have been used to open the fund. Local groups are invited to apply within an eight-week window for money for schemes to deliver on-the-ground projects to improve the water environment.

South West Water In Court For Six Years Of Alleged Illegal Discharges - The Environment Agency has brought 30 charges against South West Water in Plymouth Magistrates Court for illegal discharges over a six-year period.
The Agency used Event Duration Monitoring data to argue that South West Water has spilled illegally at seven sites across Cornwall and one in Plymouth. 
South West Water said it is taking the charges seriously, but can’t comment on a live case. The case will continue on 3 July.

Defra publishes River Wye Action Plan - Defra has issued an Action Plan for the River Wye, which is struggling under the pressure of agricultural pollution, other types of pollution, climate change and invasive species. 
The plan included the appointment of a ‘River Champion’ for the catchment and £35m of grants to curb pollution from poultry farming, which is intensive in the area. 
The condition of the River Wye Special Area of Conservation (SAC), which covers the stretch of the river in England, was downgraded to ‘Unfavourable – Declining’ last year. 
The new Welsh Government secretary for climate change and rural affairs Huw Irranca-Davies has confirmed that collaborative working will continue to feature as a priority as Wales works to address river pollution. He will chair the next River Summit in July.

Water Resources

Reservoirs are 95% full - Reservoirs across the whole of England are 95% full, and groundwater levels in all aquifers are normal or higher, the National Drought Group has reported. This means there is low-risk that hosepipe bans or business usage restrictions will be needed this summer. 

The healthy water resource position follows the wettest October to March on record. Groundwater flood alerts and warnings are in place across many parts of central southern England, and monthly mean river flows in March were high for the time of year. The National Drought Group nonetheless urged water companies to continue to prepare for future droughts and to cut leaks, and asked customers to use water wisely. 

World First ‘Water Positive’ New Development Created In Bedfordshire - Bidwell, in Houghton Regis, Bedfordshire has become the world’s first ‘water positive’ new development, Affinity Water has claimed. 
The site is the trial ground for a project led by Affinity Water, funded through Ofwat’s Innovation Fund, which aimed to prove that the water consumed by a new development could be effectively ‘cancelled out’ so no additional strain is put on local water resources.

A two-pronged approach was used: 
• Minimising consumption in the new housing on site through technological interventions and behaviour change initiatives run with residents.
• Offsetting the remaining water used by the new development by water auditing local businesses and other organisations, and encouraging water efficient practices.

Part of the funding deal was to share learnings from the scheme. The project partners plan to create a national blueprint for achieving water neutrality to enable growth while protecting the environment.

Customers

Customer Trust Falls Further - Research from Ofwat and the Consumer Council for Water (CCW) has showed a deteriorating picture of sentiment towards the water sector. 
Compared to the first wave in 2021, a December 2023 survey found: 
• Only 23% said they trust their water provider to do what is right for the environment, down from 31%.
• 21% believe their water provider acts in interests of the environment, down from 27%.
• Satisfaction with the quality of water services dropped to 58% from 65%.
• Satisfaction with wastewater and drainage services fell to 49% from 56%.

People

Two Join Environment Agency Board - Environment secretary Steve Barclay has appointed Brittany Harris and Maya Leibman as non-executive directors to the Environment Agency board. The appointments began on 1 April 2024 and will run for three years.