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| | Water resources |
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Do companies plan their water resources? What is Ofwat's role in this?
Companies have a duty to maintain the security of their supplies. To do this they produce water resources plans. These plans set out forecasts of supply and demand over a twenty-five year horizon, and how companies intend to provide sufficient water to meet their customers' needs, while protecting the environment. For more on water resource planning, see the Environment Agency's website.
The Water Act 2003 introduced statutory provisions for water companies to produce water resources plans. The regulations came into force on 1 April and will allow stakeholders to be better informed about the planning process and improve the consistency and transparency of companies' water resources plans.
We have a duty to ensure that water companies can finance and fulfil their functions, including maintaining the security of their supplies, and to promote economy and efficiency. As part of the process of setting price limits, we assess companies' water resource management plans to ensure that the measures proposed to maintain the balance between supply and demand for water provide value for money, taking account of environmental and social costs.
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