Moving water around the UK is part of the solution Water Industry - PowerPoint PPT Presentation

Moving water around the UK is part of the solution Water Industry Forum 15 th Oct David Essex General Manager - Water Strategy & Innovation Severn Trent Water

The problem is clear By the middle / end of this century we will be facing ....... • more variable weather • more people living in UK Moving water around the UK is part of the solution – D Essex, STW 2

The South East is facing supply demand deficits in the order of 850 Ml/d by 2040 In South East • Normal year - there is enough water South East deficits until 2035 using existing supplies • However in a dry year there are deficits up to 550Ml/d (Dry Year Annual Average) ~ 3.3 m people • In the critical 3 months in summer, there is a substantial deficit of up to 850 Ml/d Source : Draft WRMPs (Dry Year Critical Period) ~ 5.6m people − During these periods, cannot rely on raw water being available in rivers. Moving water around the UK is part of the solution – D Essex, STW 3

We need to reduce demand AND secure other sources of supply Flexible and adaptable solutions to deal with whatever the future brings • Demand side − Use less − Waste less − Reuse where possible • Supply Side − Mixture of sources − Grab it when its there − Store it − Move it to where we need it We need ALL of the ABOVE Severn Trent are working on ALL of the ABOVE Moving water around the UK is part of the solution – D Essex, STW 4

We have a credible demand side plan Severn Trent already have the lowest distribution input per customer • Drive resource efficiency even lower − Further reduce leakage • total and response times • current record low levels • 17% reduction 2010-2020 − Further improve water efficiency • STW largest volume & lowest unit cost in industry • Physical modifications - devices • Behaviours - Education, • Meters- means to an end • Use non-potable where possible − Innovation in Reuse - Grey water / Rainwater Harvesting • Severn Trent Centre • Coventry school – RWH • Birmingham Big Water Plan • Innovation workshop – supply chain • Research Fellowship & Eng D - Exeter Moving water around the UK is part of the solution – D Essex, STW 5

Recent weather patterns have highlighted the variability and uncertainty in weather Being resilient to future risks • Adapting our supply systems to be able Droughts to cope with unexpected shocks 2010 2011 − Periods of drought 2012 − Severe cold / hot weather − Severe rainfall or wind • Loss of major assets - power or sites themselves − Loss of production or distribution systems • Major landslips aqueduct / pipeline damage • Large volumes of bursts − Security threats Moving water around the UK is part of the solution – D Essex, STW 6

It will be important to have flexible and adaptable supply side options Being able to adapt to changes in seasonal and geographic locations • Both surface water and ground water • Ability to grab water when it is available across seasons • Storage in existing impounding reservoirs • New storage underground / above ground • Ability to transfer bulk supplies across regional boundaries Trading needs to be part of the suite of options available in the future Moving water around the UK is part of the solution – D Essex, STW 7

Any trading option needs to be cost effective Draft Water Resources Management Plans London – preferred options • Each water company has looked at the options for additional supply in the future 100 90 80 Target 70 • If a trading option can beat the next best 60 price cost – then it should be seriously AISC (p/m3) 50 Effluent 40 re-use considered 30 Demand 20 Demand Management Management 10 • Long life assets - - 50 100 150 200 250 300 350 Volume (Ml/d) Source: Thames Water draft WRMP Moving water around the UK is part of the solution – D Essex, STW 8

Our PR14 plan includes a number of cost effective trading options for bulk raw water Commercial discussions are ongoing Severn Trent Draycote Reservoir Thames Banbury Milton Keynes Affinity • Relatively short pipeline • Move raw water between river basins • Volume 200-300 Ml/d ~1.5 m people • Other potential beneficiaries (agriculture, environment – low flows) Moving water around the UK is part of the solution – D Essex, STW 9

There are a number of potential barriers that will need to be overcome • Willingness to “contract out” peak water resources • Ability to deliver contract volumes reliably when needed Mindset by companies to make the market work for benefit of customers Regulator support & robust contracts • Loss of raw water along the way Abstraction controls – current and reformed • Environmental concerns Impact assessment – including positive benefits Moving water around the UK is part of the solution – D Essex, STW 10

Conclusion : Moving water around the UK is part of the solution As long as it is cost effective, available when needed and viable • Part of a sensible balance of demand and supply side options • Part of a portfolio of supply side choices • Flexible and adaptable for uncertain future Why wouldn’t we consider it ? Moving water around the UK is part of the solution – D Essex, STW 11