Challenges and opportunities

Welcome to my February update.?

Firstly, I hope you are enjoying the improved WRSE website, which went live in mid-February. We have made several small yet impactful changes to make it easier than ever to find out more about our regional plan.?

The water industry has continued to be in the spotlight with Ofwat 's final determination announcement – and the decision by six water companies to refer their case to the Competition and Markets Authority , the ongoing Cunliffe Commission review into the sector, and Chancellor Rt Hon Rachel Reeves ’s endorsement of the South East Strategic Reservoir Option (SESRO) to unlock growth in the Ox-Camb corridor.??

I was delighted to see support for water resources schemes in Ofwat’s final determination to help address the 2.7 billion-litre water shortfall if no action is taken. A total of 15 schemes in our regional plan are included in the RAPID programme, including reservoirs at Arlington, Broad Oak and SESRO; the Grand Union Canal Transfer scheme and three smaller water recycling solutions in Aylesford, Isle of Wight and Sittingbourne which will benefit from light-touch RAPID support.?

The range of different scheme types included in RAPID’s programme demonstrates there is no one-size-fits-all solution and a whole host of schemes are needed to secure a positive supply-demand balance.??

Alongside reducing water demand and increasing resilience against climate change, new water sources will be crucial to balance supply with demand. Embracing technology such as water recycling or desalination is essential to help us build a resilient water supply system. While these are relatively new in the UK, both have been used extensively internationally and are widely accepted in countries including the USA, Australia, and Singapore.??

There is a pressing need for a joined-up national narrative around the severity of the water resources challenge. This should emphasise the situation's urgency, the collective action required to address it and the new solutions we need to implement. ?

Storms and flooding are becoming more prevalent, alongside above-normal rainfall levels. However, we must not forget the increasing frequency of droughts in the UK.??

Historically, droughts occurred every 5-10 years, but recent years have seen more frequent periods of excessively dry weather, including six such periods in the last six years alone. Climate change is exacerbating the frequency and intensity of droughts and floods, making it imperative that we act now.?

I welcome the Government’s determination to deliver on its growth agenda, which will involve tough planning decisions. While not everyone will be happy with these decisions, the consequences of inaction would be far more damaging for the UK. The push for growth across multiple sectors highlights the nation's acute skills challenge. We need to encourage growth in the supply chain, both from UK and international sources, to avoid a supply and demand mismatch that could lead to higher consumer prices.?

Looking to the future, WRSE has been pleased to share our thoughts on water resources planning reform with the Cunliffe Commission, following the publication of our recommendations paper and stakeholder roundtable in late 2024.?

We look forward to hearing the review's outcomes and working with the Government, regulators and partners to improve water resources planning.

To find out more about our work, visit www.wrse.org.uk.

Best regards,?

Chris?Murrary

Chair, Water Resources South East