Going at all that in reverse order, separating out the flood
element makes perfect sense to me. In fact, this represents the majority of
the EA spend and the PR nightmare they most dread. It also dictates some
very odd funding decisions: speak it quietly but most of the grant funding
for chalkstream restoration of the past 15 years has come from the flood
defence budget. There is some logic behind this, by connecting the river
back to the water meadow landscape, but it does require a bit of lateral
interpretation of the intent if we are being truthful.
As to the rest the meat is in the merging of the EA’s
pollution monitoring functions (sic) and the financial regulation provided
by Ofwat; we can largely ignore the Drinking Water Inspectorate as it is
worthy but tiny.
At first blush the creation of a regulatory behemoth
straddling the water industry looks like a no brainer but I’m not so sure
and here is why. The problem with the water industry is capacity. Capacity
to provide water without prejudicing the natural flows of our river.
Capacity to process sewage in such a way that the treated waste flows back
into our rivers and seas with minimal ill effects. Neither of these
objectives are terribly hard. The Romans aced water supply two millennia
ago. The Orcadians had sewers for their Orkney Isle homes a millennia prior
to that. The difficulty is people. Too many people.
The last time there was a significant push to increase the
capacity for both the water and sewerage system was either side of WW2, the
planning based on a population of something around 50 million. Today we are
pushing on to 70 million. Even on its own that increase of 40% in the
population was to require a massive undertaking to build more plant and
reservoirs, the issue made problematic by personal water use more than
doubling in that same time frame along with home waste now containing more
damaging chemicals than ever before. At one time it was industry that
killed our rivers; today it is homes (along with farming) that have
taken on that particular mantle.
Any why? Because nobody has spent the money to build the
required infrastructure. The water industry, both in its nationalised and
privatised states has been deprived of the funds by politicians who have
demanded cheap water bills at the expense of infrastructure spending. As I
have written before the cost of the average annual household water bill is
less than the TV licence. How utterly bonkers is that?
So, the question must be asked, would a super water
regulator ever square the circle by allowing a massive increase in water
and sewerage bills (believe me it will be massive) to fund the huge
infrastructure spending required to a) play catch up on population numbers
b) future proof for growth and c) upgrade 19th century waste processing technology for 21st century waste output?
My sense is the answer to this is no; I cannot see that
combining the regulatory functions will resolve the historical conflict
between need to spend and the need to keep consumer bills low unless that
regulator has the authority to let bills rip which seems to be unlikely.
And assuming that to be the case much better to retain the separation of
regulation but remake the EA into a Pure Water Authority with a massive
budget and draconian powers.
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