UK Water Industry

Question 1

Who regulates the UK water industry

Answer 1

1. Ofwat - economic regulator (england and wales)
2. Water industry commission for scotland (WICS)
3. Commission for regulation of utilities (CRU)
4. Environement Agency - environmental regulator
5. Drinking Water Inspectorate - quality of drinking water

Question 2

Who pays fees for Ofwat?

Answer 2

Fees are paid by water and wastewater companies

Question 3

What does AMP mean?

Answer 3

• Asset management plans (AMP) - 5 year investment cycles regualted by Ofwat.

Question 4

What is price review and when does this occur?

Answer 4

Price review is a review conducted by Ofwat to determine what the water companies can charge the customers. Price reviews are undertaken at the beginning of the AMP period.

The 2024 price review (PR24) concluded in December 2024, setting price controls for 2025 to 2030

Question 5

What is WRMP and its purpose?

Answer 5

WRMP stands for water resources management plan. It sets out how the water companies intend to achieve a secure supply of water and a protected and enhanced environment.

Question 6

What legislation is WRMP under?

Answer 6

Water Industry Act 1991

Question 7

How often must water companies prepare a WRMP, review it, and forecast their supply and demand?

Answer 7

25 year forecast
Prepare a plan for atleast 5 years
Review it annually

Question 8

Who prepares WRMP

Answer 8

Each water companies must prepare its own WRMP

Question 9

What is the sequence for WRMP, AMP and price review?

Answer 9

1. WRMP - Water companies prepare and submit their WRMPs before the start of the AMP cycle.
2. Price Review - The price review process follows the submission of the WRMPs. Ofwat reviews the WRMPs and business plans.
3. Amp - With the price controls and investment levels determined, water companies proceed with executing their AMPs

Question 10

Which regulatory bodies review WRMP

Answer 10

• Ofwat
• EA
• Natural resources wales

Question 11

When was water industry in england and wales privatised?

Answer 11

1989

Question 12

When were the regional water authorities established?

Answer 12

1973

Question 13

Why was the water industry privatised?

Answer 13

Lack of governments ability to invest (limited by the amount they could borrow)

Question 14

What are the main functions of the EA?

Answer 14

1. Licensing all water abstractions and discharges of wastewater
2. Preventing, controlling and reducing pollution of all waters
3. Undertaking flood protection and coastal defence measures.

Question 15

What is the asset life cycle

Answer 15

Appraise -> Design -> Procure-> construct/install/demolish and replace -> Operate and maintain -> Appraise