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Welsh Water 2050 1 Welsh Water 2050 1 Welsh Water 2050 Consultation Document | May 2017 Welsh Water 2050 2 Welsh Water 2050 – to become a truly world class, resilient and “ sustainable water service for the benefit of future generations ” Welsh Water 2050 3 Contents Foreword 4 3. Strategic Responses 39 4. Affordability for Customers 108 Executive Summary 7 3.1 Safeguarding clean drinking water by 5. Helping to Create a Better Future for 110 working with nature Communities 1. The Development of Welsh Water 2050 14 3.2 Enough water for all 5.1 Contribution to the Well-being of Future 1.1 Context 3.3 Improving the reliability of drinking Generations Act 1.2 Purpose water supply systems 5.2 Contribution to the Water Strategy for 1.3 At a glance 3.4 Protecting our critical water supply Wales 1.4 Approach assets 5.3 Contribution to the State of Natural 2. Future Trends 21 3.5 Achieving acceptable water quality for Resources Report all customers 6. Delivering the Future through 2.1 Demographic change 113 3.6 Towards a lead free Wales Innovation 2.2 Climate change 3.7 Addressing our ‘worst served’ 7. Stakeholder and Public Consultation 116 2.3 Changes in customer expectations customers Appendices 117 2.4 Changes to the structure of the 3.8 Employer of choice economy Bibliography 123 3.9 Leading edge customer service 2.5 Environmental change 3.10 Smart water business 2.6 Protecting essential infrastructure 3.11 Using nature to reduce flood risk and 2.7 Policy and regulatory change pollution 2.8 Protecting public health 3.12 Cleaner rivers and beaches 3.13 Protecting our critical wastewater assets 3.14 Playing our part in combatting climate change Cover (Page 1) image - Figure 1: Ystradfellte Reservoir. © Arup Page 2 image - Figure 2: Original photo: Mount Snowdon by Sam Stockman, Creative Commons Licence Welsh Water 2050 4 Foreword Planning ahead to 2050 to enable us to earn the trust of future generations of customers At Welsh Water, we are proud to provide Back in 2013, following engagement with strategic resilience framework for Welsh essential public services in the management over a thousand of our colleagues, we Water. of the water cycle to over three million people adopted a simple, clear vision for our That resilience framework incorporates all across most of Wales, and some adjoining business, which is: the elements of a truly resilient business - parts of England. Uniquely, we are a not-for- including assets, finance, governance, profit business with no shareholders, which To earn the trust of customers, people, systems and culture. In September means that we can focus exclusively on what “ every day 2016, the Glas Cymru board adopted a new is in the best interest of our customers. mission statement, as shown below. Because we provide an essential public From a wide variety of customer research” service, we need to: and also from our daily tracking of customer Welsh Water 2050 – to become a • Plan for the very long-term, so that we sentiment (including complaints, contacts, “ truly world class, resilient and compliments and satisfaction ratings), we can aim to protect future generations from sustainable water service for the potential challenges (such as climate know that we have many differing groups of change) and take full advantage of customers, with a wide variety of wants and benefit of future generations potential opportunities (for example, new needs from our services. technology and data analysis); Customers across all groups place a Further work with Arup and Cardiff University” has enabled us to draw up a comprehensive • Be customer-led in everything we do – particular emphasis on the reliability of the list of eight major challenges and both in terms of our day to day activities essential services we provide (safe drinking opportunities likely to be relevant to our and also in developing our plans for the water and environmental protection). Our service, drawing on a worldwide review of future; customers expect us to protect the integrity of these services against short-term events best practice. • Work in partnership with many other (such as extreme storms or major asset Trends of particular importance include: organisations, to ensure that we play our failures). part in delivering society’s wider goals; • Climate change will lead to more extreme They also need to know that they can trust us weather events; • Have the best people to deliver the best to be looking well into the future, anticipating • Urbanisation and intensification of land outcomes for our customers; challenges to service reliability and taking the use may lead to greater pressure on our • Constantly look for opportunities for necessary action to ensure that the service is environment; research, innovation and adoption of best resilient to those future risks and trends. We practice to help us deliver a better and have developed Welsh Water 2050 to • Customers’ expectations for a reliable more efficient service to our customers; respond to that customer priority. and personalised service will increase; • Provide a high quality service in which all We have worked with Arup, a leading • An ageing population will create new of our customers can place their trust in; multidisciplinary consultancy, to review challenges; and and worldwide best practice in resilience • Essential infrastructure will need to be • Ensure that this service represents good planning, such as the 100 Resilient Cities upgraded and maintained, at an value for money and is affordable for our programme (supported by the Rockefeller affordable rate. customers. Foundation), and to develop a customised Figure 3 : A Welsh Water engagement event. © Welsh Water Welsh Water 2050 5 Foreword Planning ahead to 2050 to enable us to earn the trust of future generations of customers Our customers expect us to plan for these urban flooding, environmental quality and For many of the 14 strategic responses, we future trends, and to ensure that the well- lead in drinking water. As a consequence, have set out a comprehensive response and being of future generations is not the current business areas and our legal a progressive response. The comprehensive compromised by a failure to prepare for responsibilities may change over the period. response would involve taking all actions that foreseeable trends and risks. We have In some cases, there may be a case for may be necessary to meet the future therefore developed 14 strategic responses, government to consider placing wider legal expectations of our customers by 2050, which set out plans of action for how we will responsibilities on Welsh Water, as has where these actions fall within our current respond to these trends. Of course, there is happened with the transfer of private sewers remit. The progressive response comprises a high level of uncertainty when considering and lateral drains. In other cases, aspects of actions which we believe will be essential, such potential challenges and opportunities service that we currently deliver could be either to meet current customer expectations as far out as 2050, particularly in respect of opened up to other potential service or to address existing clear trends. As such, future technology advances and future providers, through regulatory reform and the it constitutes a ‘no regrets’ programme of customer and community expectations for development of market mechanisms. At this action, but could leave more work for future water and wastewater services. Hence, our stage, our priority is to consider what needs generations to do to accelerate the pace of approach in Welsh Water 2050 puts much to be done to meet the expectations of mitigation. There is clearly a balance emphasis on maintaining flexibility in how we customers and communities, rather than how between the scope of the ambition of the respond to trends and also in making “no and by whom that should be delivered. long-term plan and its likely cost to regrets” decisions, taking first those steps In many cases, we cannot achieve our goals customers. There are also important inter- which address the most urgent priorities of without working in partnership and in new generational issues as to when customers our customers, whilst targeting research and ways with other organisations, particularly at should pay for these improvements. These innovation to address longer term potential a catchment level. Equally, our actions can are key trade-offs which we will be exploring challenges and opportunities. However, have wider benefits to other societal agendas further with customers and a wide range of uncertainty cannot be an excuse for inaction with our commitment to recreation and stakeholders over coming months. or simply leaving future generations to education services contributing to public The costs of mitigating the challenges and mitigate the impacts as best they can – we health and well-being. Again, this co- harnessing the opportunities from now until have to plan ahead. This approach is operative and catchment based approach to 2050 will only be affordable for our consistent with the Welsh Government’s solving society’s potential issues is very customers if we are committed to innovation. strategy as set out in the Well-being of much in line with the approach set out in the We are planning to ensure that bills will Future Generations (Wales) Act 2015. Environment Act (Wales) 2016 and could remain affordable for our customers through For each strategic response, we have make a significant contribution towards better ways of working, reduced operational considered a range of possible actions, from delivering the environmental improvements costs, research and innovation in partnership research to investment. In many cases, the discussed in the first State of Natural with others and continued access to long- responsibility clearly rests with us. In others, Resources Report (published by Natural term, low cost finance for asset investment.
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