Regulators tell Affinity to act immediately on supply security concerns

(by Karma Loveday)

The Environment Agency and Ofwat have identified “serious concerns” with Affinity Water’s security of supply risk and called for “immediate action to address the issues” – with a warning of escalation and enforcement if this does not happen within the required timeframe.

In a joint letter with Defra on the 2025 annual review of the company’s Water Resource Management Plan (WMRP), the regulators set out the following concerns: 

• Distribution input and per capita consumption are above forecast levels and do not align with WRMP24 baseline assumptions.

• Despite reporting a company-wide supply-demand balance surplus, the target headroom has been “significantly and inappropriately adjusted which masks deficits in the dry year uplift scenario for some Water Resource Zones”.

• Affinity’s proposed resolution of dry year deficits through the unplanned reliance on drought permits in the short-term will adversely impact levels of service. Alternative options including using existing internal transfers have not been confirmed.

  
  

In each case, the letter called for a plan of action within six weeks. 

The regulators also gave Affinity until 22 May to submit a revised WRMP annual review, which should take account of SESRO cost increases.