What are areas of water scarcity?

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What are areas of water scarcity?

The Water Industry (Prescribed Conditions) Regulations 1999 set out the provisions for water scarcity status. Companies may apply to the Secretary of State for Environment, Food and Rural Affairs for water scarcity status if they consider they are going to experience problems meeting customers' demands. In making his/her decisions whether or not to grant water scarce area status the Secretary of State is obliged to consider:

the likely demand for water in the following 10 years;
the water resources which are available or which could be made available to meet demand; and
the measures that the company could take to meet or to manage demand.

Companies granted water scarce area status can compulsorily meter their customers. Folkestone and Dover is, so far, the only company to apply for, and be granted, water scarce area status.

The Secretary of State consults the Environment Agency, Ofwat and customer representatives before reaching his/her decision.

However, from 2010 water scarce area status will be superseded by new powers that allow companies in areas of serious water stress to meter customers - but only if their 25 year water resource plans, which take account of social and environmental costs, identify compulsory metering as the most economic way to balance supply and demand for the future.