The Agency has now published on its website its responses to each water companies’ draft water resources management plan, a number of which appear to be highly critical.
Ofwat published on 30 September an overview of its position by way of a letter dated 23 September and has also now published its individual responses on its website. The letter of 23 September indicates that, in most cases, Ofwat considers that it has been unable to say whether a company’s plan represents the best value for its customers. It indicates that it thinks that the reasons for this vary, but include cases where companies have:
- failed to demonstrate that the underlying ‘baseline’ forecasts of demand from customers and supply in the future from existing water resources are robust.
- pre-selected certain schemes to balance future supply and demand without appraising them.
- failed to explain clearly the process for selecting preferred schemes.
- justified schemes on the grounds that they have customer support, but failed to provide robust evidence of that support.
- taken too narrow a view of the costs and benefits of different options.