EA calls for halt to dumb meter installation, as supply gap reaches 5bn litres a day by 2050

Stop installing dumb meters, the Environment Agency (EA) has bluntly told water companies, in its summary of their revised draft Water Resources Management Plans (rdWRMPs), published last week.

The Agency praised a “significant increase in water companies’ ambition for drought resilience and improving the environment” in the latest iteration of plans, with the rdWRMPs showing “significant improvements”. This included exceeding the Environment Act 2021 target to cut the use of water per head by 20% by 2038; the latest plans would deliver a 22% cut, up from 17% in the earlier drafts.

However, the EA said Defra had written to firms individually, with “many requiring further actions before the plans can be finalised”.

That is perhaps because the rdWRMPs revealed an even bigger supply gap by 2050 than previously calculated: nearly 5bn litres per day, which is more than a third of the 14bn litres of water currently put into public supply. The EA explained that the deficit had risen (from c4bn litres a day) due to updated demand forecasts, additional reductions associated with protecting and improving the environment, and better representation of the baseline supply position without drought measures included.

In that context, the Agency robustly endorsed smart metering and non-rainwater dependent supply side measures.

Regarding demand reduction, it called on firms explicitly to install smart meters and deliver their water efficiency and leakage commitments: “We, the Environment Agency, are therefore asking water companies to stop installing [dumb] types of meters and instead rollout smart meters which capture daily and sub-daily usage data. This rapid and essential transition needs to be prioritised. We expect all water companies to start installing smart meters from 2025, and to replace the current basic meter stock.”

The EA shared that it was “concerned around the delivery of demand reductions, given recent widespread challenges in achieving planned reductions on household water consumption”. It also highlighted that the rdWRMPs would only achieve a 6.1% reduction in non-household consumption by 2038 – up from the earlier ambition but short of the 9% Environment Act target for this segment. It expected further measures to be taken, including the rollout of smart meters for business users, working in conjunction with retailers.

On supply, the summary shared that the rdWRMPs contain proposals for multiple new schemes by 2050 that will supply 10m litres of water per day (Ml/d) or more, including: four new desalination schemes, seven new reservoirs, five new water recycling schemes and multiple new internal and inter-company transfers. This excludes supply options at Southern Water, given the company is yet to reconsult on its rdWRMP.

The Agency commented: “The inclusion of options such as desalination and water recycling mark a transition to new supplies that are independent from rainfall. These options are well established elsewhere around the world and expected to be an important step in ensuring resilient supplies in a changing climate.”

It further championed the importance of the plans overall: “The latest WRMPs produced by water companies are critical for society, setting out efficient solutions that give value and reassurance to customers. Once finalised, the effective delivery of these plans will be extremely important to ensure sustainable growth. If delivery is unsuccessful, we will face growing water supply deficits.”