Riverside tales Lessons for water management reform from three English rivers Riverside tales 1 Contents 1 Executive summary 3 Introduction 4 Unsustainable abstraction – the problem of taking too much 8 The iconic chalk stream – the Itchen 15 The Cinderella rivers – the Mimram and the Beane 23 Over the hill and far away – the upper Kennet 27 What can we learn? – barriers to reducing damaging abstraction 32 Moving forward – a new approach to restoring sustainable abstraction WWF is working on freshwater issues in the UK to: n Safeguard the natural world by protecting our native ecosystems n Change the way we live, so we waste less water n Tackle climate change by promoting water management measures that will help our rivers cope with a climate change. 2 Riverside tales Executive summary WWF’s Rivers on the Edge programme campaigns to raise n Plans for water efficiency fell short – annual water efficiency awareness of the impact on nature from taking too much plans expect to save the equivalent of just 0.34% of total water from our rivers. We’re working to develop solutions water supplied to households. A significant number of water to help reduce waste and protect our rivers now, and in company Water Resource Management Plans do not aim to the face of climate change. In 2009, a number of key plans meet the government’s target of 130 litres per person per day were finalised that will impact on how water is managed by 2030. for years to come: the 2009 Periodic Review of Water n Plans for tackling leakage stagnated. Ofwat has allowed Company prices; the Water Framework Directive River companies to reduce leakage by about 2%, despite the fact Basin Management Plans; and the 25 year Water Resource that total leakage is about 3,000 million litres every day. This is Management Plans. equivalent to the Environment Agency’s estimate of the amount This report focuses on the impact of these plans on unique that is needed to restore sustainable levels of abstraction chalk streams under stress – the Itchen, the upper Kennet across the country. and the tributaries of the upper Lee (the Mimram and the n Metering is not being rolled out fast enough, and a number Beane). We look at the outcomes for each to understand of water company plans for enhanced metering schemes whether government, regulator and water company plans were not approved by Ofwat, even in catchments that are will restore and protect these important rivers for people significantly water scarce. and nature. On the basis of the assessment of the decisions made through these planning processes, we develop n The Water Framework Directive River Basin Management conclusions and lessons for future reform. Plans do not contain clear measures and timetables to address abstraction on catchments not protected by the There was some significant progress in 2009. Ofwat’s water Habitats Directive, even when the river is failing to meet efficiency target has meant that – for the first time – all water ‘good ecological status’ as a result of over-abstraction. Clear companies have an obligation to deliver water efficiency, bringing measures and timeframes for resolving the problem of over- it into the boardroom of every company. Six companies are also abstraction have not been provided, including the absence of planning large scale water efficiency retrofit projects, meaning a time-bound mechanism for implementing licence changes on thousands of new homes will be more water efficient by 2015. the Kennet, Mimram and Beane, despite the problem having There are plans for more water meters (to increase the proportion been acknowledged years – and even decades – ago. of households metered from 37% to 50% by 2015) and, for the first time, Ofwat’s Final Determination has meant that proposed n The mismatch of historical water licences with Ofwat’s demand measures outweigh development of new supply1. assessments of water availability creates a perverse signal in the water and housing planning sectors. Historical abstraction The Environment Agency’s Restoring Sustainable Abstraction licences help create an illusion of ‘water surplus’, even scheme has made progress with a number of investigations when current abstraction is significantly affecting ecology on into the environmental impact of abstraction across the country; the ground. Historical licence amounts rather than current there has been agreement to fund a number of reductions conditions have been used when creating water and housing in abstraction licences for Habitats Directive sites (including plans, creating a fallacy whereby more homes are planned and the River Itchen) through water bills. The Cave2 and Walker3 measures to reduce demand for water are not judged to be reviews, arising from the government’s Future Water strategy4, cost-beneficial for areas already identified as under significant recommended that the abstraction licensing regime should water stress. reflect the scarcity value of water. n In the main, water companies tend to maintain the supply- But progress has not gone far enough, and opportunities continue demand balance in traditional, ‘comfortable’ ways. We have to be missed. The situation facing rivers across the country is seen limited use of creative solutions to address unsustainable serious: ecosystems in a third of river catchments are under threat abstraction, for example through demand reduction and because abstraction and licence levels are too high. With climate optimisation of water resource networks. change projected to have significant impacts on natural river flows, and population growth likely to cause significant rise in demand, the future doesn’t look bright for our rivers unless we grab all available opportunities. A number of key opportunities to protect freshwater ecosystems were missed in 2009. For example: Left: the River Itchen navigation Riverside tales 1 The Itchen – the iconic chalk stream – can be held up as the 2. There is an urgent need for incentives to manage water success story of our three case studies. Because it is protected resources sustainably, creating market-based mechanisms under the Habitats Directive, the Environment Agency, Ofwat to complement existing regulatory approaches. and water company have worked to ensure that solutions to n A rapid move to universal metering now needs to be secured. unsustainable abstraction – including demand management – will n Scarcity charges on abstraction where and when water is be implemented. The other rivers are not so lucky. The Mimram scarce should be introduced. and Beane are not deemed to be of national importance, which n With appropriate safeguards, barriers to trading and sharing has meant that – despite the long recognised problems – funding water between companies should be removed. has not been approved to reduce abstraction. Alarmingly, because n Many of these incentive-based objectives could be delivered the historical, over-inflated licences remain in place (creating most efficiently through the introduction of the linked scarcity an illusion that sufficient water is available), demand measures charge and reverse auction process contemplated by the that could reduce pressure from abstraction have also not been Cave Review. approved, while plans for new housing have been given the green light. The Kennet faces a similar situation, despite the water 3. The mismatch between Ofwat and company assessments company investing locally in water efficiency measures. of water resource availability and the Environment Agency’s assessment of over-abstraction must be reconciled, as it is Under the current ‘rules of the game’ no single player – Ofwat, currently driving bizarre regulatory outcomes. the Environment Agency, water companies – can be held fully n Ofwat, advised by the Environment Agency, needs to develop accountable for the current lack of progress. The game itself – a methodology for assessing water resource availability that the framework for how we manage water resources in England reflects scarcity. and Wales – needs to be changed. We need new thinking about n This methodology should be used when planning new how to address current problems, in order to develop policy, developments and housing, as well as when planning for regulatory and business frameworks that are flexible enough to water resources. meet today’s challenges and adapt as the climate changes. Our current systems are rigid and the tools are blunt; modern water 4. More sophisticated and innovative responses to periods management must be responsive, innovative in delivery and use of below average rainfall could lead to low-cost solutions to multiple instruments to deliver ‘low regret’ outcomes. Above all, over-abstraction. we need clear commitment to address unsustainable abstraction, n More flexible mechanisms (with multiple trigger points) need to remove barriers and develop new approaches. We cannot expect be developed for responding to periods of below average water companies to make more sustainable decisions if there are availability, and rewarding these through the regulatory regime. systemic disincentives to them doing so; we cannot expect the n Consideration should be given to distinguishing between public to pay for solutions unless they are aware of the problems; normal year and below-average year abstraction volumes in water companies cannot expect their customers to act to save water licences. water unless the companies are fully convinced about the benefits of water efficiency. 5. We must stimulate and maximise opportunities available WWF is calling