This is the second edition of Defra's social and environmental guidance to Ofwat. Its purpose is to provide Ofwat with a steer on the key environmental and social policies to which the Government expects it to contribute in carrying out its role as the independent economic regulator of the water industry. It should be read in conjunction with the Strategic policy statement [appended]. Ofwat is required to have regard to this Guidance when discharging its statutory functions. The Guidance covers Ofwat's work in relation to water and sewerage undertakers and licensed water suppliers who operate wholly or mainly in England
'This excellent book makes a major contribution to the literature on regulation in a pro-poor direction for urban water supply. It is extremely relevant for policy-makers striving to achieve the Millennium Development Goal for halving the share of world's population without access to clean and affordable water.' Andrew Nickson, University of Birmingham, UK The aim of this book is to present the potential benefits as well as the challenges of introducing a more formal economic regulatory process into the urban water sector arena in lower-income countries. There is a particular focus upon the impact this may have on the poorest, the informal, slum and shanty dwellers of the rapidly growing cities. Economic regulation, usually introduced in the context of private operation of monopoly water supply, can deliver objectivity and transparency in the price-setting process for public as well as private providers. The book describes and analyses these issues through a consideration of ten country case studies. As a starting point, the current situation for the provision of water and sanitation services for the poorest through non-regulated public providers in India and Uganda is reviewed. Comparative chapters are then presented on Ghana, Philippines, Bolivia, Jordan, Zambia and Indonesia, all with varying degrees of private sector involvement and regulation. Finally the experiences of two richer countries are considered - Chile and England, countries with the longest experience of economic regulation and the 'most privatized' suppliers. In all cases there is a focus on the very necessary role of customer involvement in price-setting and service monitoring and on the role of alternative (private) service providers.
The Committee calls on Defra to review Ofwat's entire remit so that the regulatory regime will keep pace with the changes set to follow from greater competition and the challenge posed by scarcer water resources. On the matter of surface water drainage, Ofwat should have intervened to ensure a more measured set price increases for this service were levied on sports clubs, churches and voluntary organisations by water companies in recent months. Ofwat and the Government should explore how the costs of highway drainage - currently born by water customers - could be shared with local taxpayers who benefit from the service. Uncertainties created by the Cave and Walker reviews (both of which reported during the current Price Review) along with changes to the regulatory regime proposed in the draft Flood and Water Management Bill may have hampered the ability of water companies to raise money on the capital markets in a manner likely to push up customer bills. Warning of water scarcity in the South and East of England, the Committee calls for the creation of a 'water efficiency obligation' to ensure the regulatory regime emphasises the need to preserve resources and to rewards customers who install efficiency measures. Other recommendations are made on the uneven regional impacts of investment in water infrastructure, the impacts of climate change, and the issue of transparency, from the price review process itself to how well Ofwat currently requires companies to demonstrate they undertake effective consultation with consumers during business planning.
This Command Paper (Cm.7319, ISBN 97801017311928), sets out the Government's plans for the future water strategy for England. It provides practical steps that ensure that good clean water is available for people. It also looks ahead to 2030, describing the water supply system the Government wishes to see. Divided into 10 chapters, it covers the following topics: Chapter 1: Future water, looking at water, housing and climate change; Chapter 2: Water demand, covering future supply and pressures and household behaviour; Chapter 3: Water supply, including resources today, and a vision for the future: Chapter 4: Water quality in the natural environment; Chapter 5: Surface water drainage; Chapter 6: River and coastal flooding; Chapter 7: Greenhouse gas emissions: Chapter 8: Charging for water; Chapter 9: Regulatory framework, competition and innovation; Chapter 10: Summary of vision and actions.
This book examines the theories and practice of how to control corporate behaviour through legal techniques. The principal theories examined are deterrence, economic rational acting, responsive regulation, and the findings of behavioural psychology. Leading examples of the various approaches are given in order to illustrate the models: private enforcement of law through litigation in the USA, public enforcement of competition law by the European Commission, and the recent reform of policies on public enforcement of regulatory law in the United Kingdom. Noting that behavioural psychology has as yet had only limited application in legal and regulatory theory, the book then analyses various European regulatory structures where behavioural techniques can be seen or could be applied. Sectors examined include financial services, civil aviation, pharmaceuticals, and workplace health & safety. Key findings are that 'enforcement' has to focus on identifying the causes of non-compliance, so as to be able to support improved performance, rather than be based on fear motivating complete compliance. Systems in which reporting is essential for safety only function with a no-blame culture. The book concludes by proposing an holistic model for maximising compliance within large organisations, combining public regulatory and criminal controls with internal corporate systems and external influences by stakeholders, held together by a unified core of ethical principles. Hence, the book proposes a new theory of ethical regulation. This title is included in Bloomsbury Professional's International Arbitration online service.
The Water Services Regulation Authority (Ofwat) is the economic regulator of the supply and demand for water in England and Wales. Its broad purpose is to regulate in a way that enables companies to secure sustainable supplies at the lowest cost to the consumer. To achieve this it aims to collect relevant and reliable information to underpin its regulatory decisions, provide incentives for water companies to meet future demands and take appropriate enforcement action if companies do not respond to Ofwat's incentives. This NAO report finds that Ofwat has secured better data on the amount of water leaking from water companies' systems, but calculations of leakage still depend on estimates of consumption, and there is a lack of reliable evidence regarding the results of water efficiency projects that seek to help consumers waste less water. Recommendations include that Ofwat should: assess companies' progress on water efficiency on the basis of the quality of the project, its costs, and the water it saves, as well as the number of consumers reached; and build on its current approach and press for a long term and sustainable approach to leakage management.
This is an extremely well-researched and documented book. The authors hypothesis is that the current water and wastewater sector is failing the populations of the western-world by clinging to orthodox and short-term visions of new technology and innovation, and also failing the developing nations by believing that delivery of western-world high-technology solutions is a contribution to humanitarian development. This is the crisis of innovation . To many practitioners in the water industry the book will be perceived to be hypercritical (of the incrementalism, conservative and dogged traditionalism ) of the sector, but in fact it is stimulating and positive. In the latter chapters an alternate more holistic model of water development is described. There needs to be a movement from large, central infrastructure resources to distributed systems that are more appropriate to local needs and can be coupled with environmentally sustainable energy sources and practices. Tim Lack, European Topic Centre on Water, UK Whilst acknowledging a massive leap from standpipe to universal water provision in 100 years in developed countries, the authors of this book see problems for global sustainable water supply and wastewater removal in the future. Using the UK water industry as an example, they describe the global water industry as risk averse and unwilling to innovate, a view that is encouraged by the institutional and financial regimes under which it works. The book explores the reasons for concern and sets out some hard-hitting views on how the water industry is failing to identify and tackle the essential problems in a world which is becoming ever more depleted of fresh water. The concluding chapter brings to a focus the problems of the crisis in innovation and gives some concrete suggestions for tackling them. This volume should raise the awareness of policymakers and regulators, technologists and concerned members of the public. Peter Chave, Independent Consultant and formerly Head of Pollution Control, National Rivers Authority, UK This significant new book highlights a little acknowledged but potentially catastrophic crisis of innovation in the global water sector, which institutions and industries are frighteningly ill-equipped to tackle or even accept. It suggests potential new technology and policy approaches to overcome both current and future problems. The book explores how technological innovation is vital to help provide sustainable water in both the UK and developing countries. However, innovation is being overlooked in the face of global trends to privatize and regulate water utilities. The authors highlight how the global water sector is failing to respond to increasingly complex world needs and continues to build largely unsustainable centralized infrastructures, opposing more appropriate, distributed and local modern technologies. The book also includes suggestions for potentially innovative technology and policy solutions to meet escalating global water and wastewater demands. Importantly, the authors adopt a long-term perspective that crosses both disciplinary and institutional boundaries, and include an international comparative perspective, covering a diverse range of examples and countries. This comprehensive book will have a broad appeal amongst researchers and academics with an interest in technology management, innovation studies, geography and development studies. It will also be a valuable asset for water regulators and governmental and non-governmental organisations working in this field.
This collection of fifteen essays by leading experts in regulation is unique in its focus on the constitutional implications of recent regulatory developments in the UK, the EU, and the US. The chapters reflect current developments and crises which are significant in many areas of public policy, not only regulation. These include the development of governance in place of government in many policy areas, the emergence of networks of public and private actors, the credit crunch, techniques for countering climate change, the implications for fundamental rights of regulatory arrangements and the development of complex accountability mechanisms designed to promote policy objectives. Constitutional issues discussed in The Regulatory State include regulatory governance, models of economic and social regulation, non-parliamentary rule-making, the UK's devolution arrangements and regulation, the credit crisis, the rationing of common resources, regulation and fundamental rights, the European Competition Network, private law making and European integration, innovative regulator sanctions recently introduced in the UK, the auditing of regulatory reform, and parliamentary oversight and judicial review of regulators. The introductory chapter focuses on testing times for regulation, and the concluding chapter draws ten lessons from the substantive chapters, noting the importance of regulatory diversity, the complexity of networks and relations between regulatory actors and the executive, the new challenges to regulatory habits posed by climate change and the credit crisis, the wider economic and legal context in which regulation takes place and the accountability networks - including judicial review, parliamentary oversight and audit - within which regulation operates.
