Government unveils interim water targets and a water efficiency roadmap in latest plans

Defra set interim milestones for long-term water targets published under the Environment Act, and announced new initiatives to support delivery, in its 2023 Environmental Improvement Plan (EIP) last week.

On demand reduction, the Environment Act target to reduce the use of public water supply in England per head of population by 20% from the 2019/20 baseline by 2038 was fleshed out with he expectation of cuts of 9% by 31 March 2027 and 14% by 31 March 2032. In addition, the EIP set out interim targets for leakage as milestones to the 50% cut by 2050; for a 20% reduction by 31 March 2027 and a 30% reduction by 31 March 2032.

Among the measures to support demand reduction, Defra announced a new, ten-year roadmap on water efficiency in new developments and retrofits. Along with implementation of Schedule 3 of the Flood and Water Management Act, this included a commitment to review fixtures and fittings regulations and the Building Regulations 2010, as well as to deliver a water labelling scheme.

Defra also committed to designate a National Policy Statement for Water Resources Infrastructure to speed up planning decisions and better enable new water supply infrastructure delivery.

On the Environment Act target to reduce phosphorus loadings from treated wastewater by 80% by 2038 against a 2020 baseline, the plan specified the interim target of a 50% reduction by 31 January 2028.

The EIP marked the first five-year revision of the 2018 25 Year Environment Plan (25YEP). It set out the progress made against the ten goals set under the 25YEP, as well as the specific targets and commitments made in relation to each goal, and how these are intended to be delivered going forward.

Retailers told to apply REC price protections on an individual customer basis

Ofwat has issued a ‘direction to comply’ to non household market retailers found to be applying the Retail Exit Code (REC) price protections for small (Group One) and medium (Group Two) customers as an average protection rather than to each customer on an individual basis.

In a letter, business retail market director Shaun Kent said this has resulted in some customers paying more than the maximum charge afforded by the REC.

The direction takes effect on 1 April. Kent said the decision reflected that the misapplication of the REC did not appear to have been deliberate non-compliance and does not appear to have benefited the retailers in question “as we have no evidence to suggest that they have over recovered revenue from customers in their totality”.