Climate change causes drought in UK but public failed by government and business

Here is my personal reflection on global warming as it impacts in the UK.

Last month, I wrote about the practical effects of climate change on my household as the drought begins to bite.

Now, the UK House of Lords science and technology committee has been looking at water policy in the UK and, to no-one’s surprise, it finds government failures, greedy water supply companies and failures by the statutory regulation body!

The peers' report criticised Prime Minister Tony Blair’s deputy, John Prescott's, whose former Office of the Deputy Prime Minister (ODPM) failed to plan properly for increased housing in the South East.

There is an acute housing shortage, especially at the low cost end of the market, so tens of thousands of homes are being built in the southeast. Guess what? They need a water supply! You know what – I could have told them that if they had asked.

But, not only didn’t they ask me but they failed to ask the water suppliers! Instead they held lots of meetings. Not my words, this is what Lord Selborne, the committee chairman, said, “There was quite a muddle in what was then the Office of the Deputy Prime Minister and the Department for the Environment, Food and Rural Affairs on the projections as to what the increased water demand would be".

He said the planning process took too long, an inevitable consequence of consultation. "There were many meetings, but we didn't feel that the water companies themselves were sufficiently consulted. Either they had failed to take the opportunity themselves or that the ODPM had failed sufficiently to take account of their views."

So it takes a House of Lords committee to ascertain that the government "failed to consider the water management implications of their house building plans at an early enough stage".

So, what else does the report identify? After years and years of the public complaining, they found that water companies are still not addressing the issue adequately. Prices householders pay for water have risen well above inflation every year to help these businesses repair and replace failing pipe work. Yet, they continue to lose millions of gallons each year.

The water regulator, Ofwat, forced Yorkshire Water to waive £40 million in charges to its customers after an inquiry found it was responsible for "serious failures" over leaks, interruptions of supply and erupting sewers.

But the committee issue a warning that prices would "inevitably" have to rise to pay for installing water meters and tackling leaking pipes.

Pay more? Yes!

But what timing is it to issue this warning on the very day that companies were announcing record profits.

United Utilities, one of Britain's largest water companies, operating in north-west England, reported pre-tax profit up 21pc before exceptionals to £481m in the year to March. The average household bill charged by United is set to jump 14.3pc over the two financial years to March 2007.
Chief executive Philip Green said: "With real price increases ahead we should continue to deliver strong profit growth."

Yet Ofwat has agreed to higher bills at United and many of its peers to help finance from retained profit large-scale investment to replace antiquated water mains. However, some of the extra profit will be used to increase United's total dividend by 3.4pc to 43.87p.

Pennon, which owns South West Water, also unveiled strong growth in pre-tax profit before exceptionals, of 24.6pc to £110.9m, as the company introduced some of the highest bill increases in the country. South West Water's average household bill has jumped 26.1pc over the past two financial years.

Pennon's final dividend was boosted 20.2pc to 35.1p. The company repeated its plan to raise the dividend by 3pc in real terms each year until March 2010.

The Consumer Council for Water said: "These profits are being reported when bills are going up and there are water restrictions in place in the south. In that situation the onus is on the water companies to prove they are delivering benefits to customers as well as shareholders."

Well, in the Hicks household we are not feeling that case is proven as the prospects of standpipes in the streets grows daily.

When I listened to the television news this morning, I heard that we had a record wet month in May but the weather has turned sunny and dry. Great for a day on the beach but we have less water available per head of population than Syria!

This news was followed by reports that the water suppliers, who hold a monopoly over us as we have no choice but to buy from them, will enjoy increased profits and shareholder dividends.

The Lords committee said there should be more re-use of water both by the water companies and in new housing developments. This might include the recycling of wastewater and rainwater.

Householders are being urged to consume less water. I wash my car less frequently than I used to, use a watering can instead of a hose in the garden (picured), have invested in a water butt, have a brick in my toilet cistern and turn off the tap whilst brushing my teeth. There is yet more that I can do and I urge everyone to “do their bit”. Businesses also need to consider what they can do to help.

The Government was urged by the committee to make it easier for water companies to have universal metering of customers, while providing extra help through the benefits system for people struggling to pay their bills.

The report revealed a "very high level" of unpaid water bills and said those people who could afford to pay but refused to do so should be partially disconnected from the water supply.

At the root of the problem, said the report, was the Government's failure to ensure properly integrated water management. The peers called for new regional boards, with greater consumer and environmental representation, to work out the best balance of measures for each part of the country.

Yep, more bureaucracy is clearly the answer to everything. Since Tony Blair took over, the number of quasi-government bodies (quangos) has mushroomed. They need offices, staff, equipment, glossy printed brochures and never-ending budgets.

So, as I traipse down to a standpipe the public service gravy train will flow even wider.

No! More bureaucrats are not going to help. A sensible government policy, restrictions on obscene profits in monopoly suppliers and effective regulation by Ofwat (supposedly the consumers’ water watchdog) is needed.

Lord Selborne said that his committee was concerned that Ofwat "in its drive to ensure low water prices for consumers has taken its eye off the ball when it comes to ensuring adequate security of supply.” If only I could say that we had achieved lower water prices!

This water shortage is a consequence of global warming. The government, private water monopoly businesses and the regulatory authority have failed us on this issue. My plea to them is to learn the lessons as they seek to address the other consequences of climate change – and learn them quickly.

As the committee said, "The Government must work much harder to integrate environmental, social and economic interests in the management of water."

This article was first published by The Los Angeles Chronicle June 2006