Green groups pan Ofwat allowances for nature-based infrastructure

Environmental campaigners have criticised Ofwat for approving, in its draft allowances for water company spending under PR24, an allocation for nature-based solutions of only 2% of total spending.

A coalition of nature groups including Wildlife and Countryside Link, The Rivers Trust, The Wildlife Trusts and The Angling Trust has published its analysis of water company business plans for the next regulatory cycle. While welcoming increased environmental spend compared to PR19, it highlighted that Ofwat’s draft decision is to allow the water industry to spend only £2bn on natural solutions, which is just 2% of the £88bn total spend and 5% of the £35bn enhancement spend permitted.

It said research elsewhere had shown that “nature-based infrastructure can be up to 50% cheaper and can provide 28% better value for money than traditional infrastructure”. It went on: “Measures, like the creation of reedbeds and wetlands, can help tackle pollution, water quality, flooding and drought, and can be more cost-effective and long-lasting than concrete and chemical solutions – which could help reduce customer bills in the long-term.”

Elsewhere the coalition noted a “welcome increase in investment and commitments” from the water sector including a commitment from most to zero serious pollutions by 2030. But it was disappointed that plans will leave 38% of bathing waters and 53% of protected nature areas affected by storm overflows up to 2030, and in some companies’ lack of ambition to help households cut their water use.

The campaigners called for:

• Much stricter fines for companies for serious pollution incidents over the next five years, with all fines paid into the Water Restoration Fund.

• A new green duty for Ofwat.

• More prioritisation of sustainable green infrastructure instead of grey infrastructure.