NFU responds to Ofwat’s consultation on draft water company plans

This consultation has now closed.

The NFU has responded to this consultation and believes that collaboration between water companies and farmers is essential in achieving better water quality.

STEPS (Severn Trent’s Environmental Protection Scheme) is an example of where this partnership has worked well. It offers farmers grants for various agricultural practices, including pesticide washdown areas, planting cover crops, and fencing.

The NFU encourages Ofwat, in addition to water companies, to adopt and explore similar approaches as outlined above (also termed catchment-based solutions), adequately rewarding farmers for their efforts in improving water quality.

Nature-based solutions and their potential

The NFU recognises the potential role of NBS (nature-based solutions) in lowering water pollution. However, NBS should be explored and developed further to ensure they deliver fair compensation for farmers and production.

The NFU has 5 key principles for environmental markets in order for NBS to be attractive to farmers and growers over the long-term.

The NFU’s position is that NBS are a complementary approach to improving water quality, rather than a substitute for hard infrastructure. Therefore, they need to be properly explored in detail before roll out and widespread adoption.

Amid growing pressure on all sectors to help provide cleaner and more plentiful water, Ofwat – the economic regulatory body for the water sector in England and Wales – has opened a consultation on its PR24 draft determinations.

The draft determinations are Ofwat’s initial rulings on what each water company should be allowed to charge its customers from 2025-30, and what levels of service and investment they should provide in return.

The draft determinations allow water companies and stakeholders to provide feedback before Ofwat makes its final determinations.

Key takeaways

The determinations support a large increase in investment by water companies over the next five years, though less than companies had asked for.

The draft states that this will ‘set them on the path for long-term transformation that will deliver better outcomes for customers and the environment’.

Key details in the draft include a proposal to increase total spending from £59 billion over 2020-25, to £88 billion in 2025-30 on areas such as:

• improving the environment
• protecting the water and wastewater system
• fair bills for customers.

Find out more at: Ofwat.GOV.UK | PR24 draft determinations.