Submission by Portsmouth Water to Hampshire County Council Climate Change Commission
The Future of Water Resources in South East Hampshire and West Sussex
SUBMISSION BY PORTSMOUTH WATER TO HAMPSHIRE COUNTY COUNCIL
CLIMATE CHANGE COMMISSION
THE FUTURE OF WATER RESOURCES IN SOUTH EAST HAMPSHIRE
AND WEST SUSSEX
Background
Portsmouth Water, established in 1857, has a long history of providing high standards of water quality
and customer service to the people of South East Hampshire and West Sussex. It has the lowest water
supply charges in England and Wales (the only Company with an annual average household bill less
then £100) and has only once in its history imposed a hosepipe ban, that being during the drought of
1976.
The Company's principal sources of water are derived from the South Downs Chalk via wells and
boreholes (50%), natural springs at Havant and Bedhampton (35%) and a river abstraction from
Gaters Mill on the River Itchen, near West End, Southampton (15%). The Company has no large
surface water storage reservoirs. It therefore needs sufficient capacity from its sources to meet
seasonal variations in the demand from its customers, the peaks usually occurring during the summer
period.
PORTSMOUTH WATER
Average Daily Distribution Input - Ml/d
DISTRIBUTION INPUT (1955-2004)
240
220
200
180
160
140
120
100
1955
Portsmouth Water
1959
1964
1969
1974
1979
1984
1989
1994
1999
2004
Page 1.
June 2007
Submission by Portsmouth Water to Hampshire County Council Climate Change Commission
The Future of Water Resources in South East Hampshire and West Sussex
Following the Company's amalgamation with other smaller water undertakings in the 1950s and
1960s, it has done much to interconnect the inherited networks such that it now has a flexible
integrated supply system which enables it to meet the challenges of ensuring that its customers
continue to receive safe and secure water supplies of very high quality.
The Company and its staff have always been forward thinking, such that by developing new sources
and new Treatment Works and storage, it has been able to meet the increasing demands of both
customers, and more recently regulators, without impacting upon customer service. Portsmouth
Water's customers have grown up with an expectation that supplies will always be there and that has
been the challenge for those in the Company to deliver.
Planning for the Future
Portsmouth Water is a highly regulated business. The Water Services Regulatory Authority (Ofwat)
regulates water charges and monitors service standards, the Environment Agency (EA) controls
impacts upon water abstractions through licensing, the Drinking Water Inspectorate (DWI) ensures
compliance with the Water Supply (Water Quality) Regulations, whilst the Consumer Council for
Water (CCW) represents customers' interests.
Water companies are principally funded through the charges made to customers, and much of the
profit they generate is reinvested in new capital projects to improve services or meet new standards.
To ensure that the companies are planning for the future, they are required every five years to set out
their water resource requirements in a 25 year Water Resources Plan and their investment and
operational forecasts in a 25 year Business Plan. Both Plans result in a 'Final Determination' from
Ofwat which determines the price adjustment formula for customers' water charges.
The Water Resources Plan 2004
In 2004 all of the water companies set out their Water Resources Plans incorporating reviews of the
availability of their resources and forecast demands for the 25 years ahead. Where potential deficits
were identified, the companies were required to evaluate a range of options on an economic basis in
order to determine those which would have least impact upon customer bills, whilst also taking into
account both social and environmental costs.
The key issues which were identified by the Company were:
Supply Side
Portsmouth Water's long history enabled it to project its source yields with confidence, although the
impact of climate change upon groundwater yields was largely unknown. Although there were a
number of concerns about the level of 'outage' (unavailability) of sources from a variety of events, the
principal concern was the EA's Habitats Regulations Review of Consents.
In Hampshire there exist a very high proportion of designated European Habitats sites and the EA has
been tasked with reviewing the impact of both abstractions and waste water discharges on the habitats
and species designated. Despite considerable studywork, the impact of the results of the review upon
the Company's abstractions was not incorporated in the 2004 Water Resources Plan.
Demand Forecasts
Commercial demands have been falling over many years and this trend is expected to continue as less
manufacturing takes place in the UK. Total Demand from domestic households is expected to rise
Page 2.
June 2007
Submission by Portsmouth Water to Hampshire County Council Climate Change Commission
The Future of Water Resources in South East Hampshire and West Sussex
partly due to the rise in population and households, and also because of a significant rise in each
individual's use known as per capita consumption.
At the time of preparation, the Draft South East Plan projections had not been published and therefore
the Company utilised RPG9 projections for housing and population forecasts. The principal issue for
domestic demand is the rising per capita consumption resulting from forecast lower occupancies in
the future and this is demonstrated by the wide variation outlined in the results from our Domestic
Consumption Monitor.
210
200
190
PCC (i/h/d)
180
170
160
150
Actuals
Average Year
140
Wet Year
130
Dry Year
19
91
/9
19 2
93
/9
19 4
95
/9
19 6
97
/9
19 8
99
/0
0
20
01
/2
20
03
/4
20
05
/6
20
07
/
20 8
09
/1
20 0
11
/1
20 2
13
/1
20 4
15
/1
20 6
17
/1
20 8
19
/2
20 0
21
/2
20 2
23
/2
20 4
25
/2
20 6
27
/2
20 8
29
/3
0
120
Year
Initial Supply/Demand Balance
Comparing Supply and Demand Forecasts for the period through to 2030, it was apparent that
although at average demand the Company could meet forecast demands, during the critical period
period this would not be the case.
Initial Supply Demand Balance
400
Ml/d
350
300
250
200
2006/7
2010/11
2014/15
2018/19
2022/23
Supply Av ailability
Bulk Supply to Southern Water
Demand
Uncertainty
2026/27
Works Washwater
By 2019/20 the Company would need frequent hosepipe bans and in a peak demand dry summer of a
drought year much more stringent measures such as Non-Essential Use Drought Orders and possibly
standpipe or rota cuts might be needed. The Company believed that such measures were likely to be
unacceptable to customers and a range of options were considered.
Page 3.
June 2007
Submission by Portsmouth Water to Hampshire County Council Climate Change Commission
The Future of Water Resources in South East Hampshire and West Sussex
Options Assessment
In total 15 different options, both covering Demand Management and Resource Development were
evaluated for costs and benefits including social and environmental costs.
A number of Demand Management measures, those constraining the rise in demand, were considered
and costed. These included increased rates of domestic metering, reduced leakage, progressive and
active water efficiency programmes including retrofitting low flush toilets.
Water Resources options considered ranged from the development of new groundwater boreholes
(difficult in an area largely considered over-abstracted or over-licensed), desalination, effluent re-use
and the development of winter storage reservoirs.
Final Solution
The final solution which was adopted incorporated a range of twin-track measures, the majority of
which are not needed until after 2015 when the supply/demand deficit is due to occur.







Reduction of Outage resulting from commissioning of cryptosporidium removal treatment
plant in 2008
Continued Promotion of Water Efficiency
Metering New Households from April 2005
Leakage Savings Initiative from 2018
Progressive Water Efficiency Programme 2018
Farlington Washwater Recovery Plant 2019
Havant Thicket Winter Storage Reservoir 2021
The final solution ensures that the Company remains in balance through to 2030 although it appears
likely that future resources will be needed, some after 2030.
Final Solution
400
Ml/d
350
300
250
200
2004/5
WAFU
2009/10
Demand
2014/15
Losses
2019/20
Bulk Supply
2002/25
2029/30
Headroom
As a result, the Company has continued its water efficiency measures through Newsletters, the
website, Water Festivals and initiatives with several Local Authorities. All new households have been
metered since April 2005 and the Company has begun the 15 year programme associated with the
development of the Havant Thicket Winter Storage Reservoir. Hampshire County Council is one of
many organisations represented on the Reservoir Stakeholder Group. A number of options for the
reservoir are being considered.
Page 4.
June 2007
Submission by Portsmouth Water to Hampshire County Council Climate Change Commission
The Future of Water Resources in South East Hampshire and West Sussex
One of the options for Havant Thicket Winter Storage Reservoir
Future Pressures
Since the development of the 2004 Water Resources Plan a number of further developments have
occurred.
Habitats Review of Consents
The EA Habitats Review remains uncompleted although decisions are expected to be announced
shortly. The Company has been working very closely with the Agency to try to devise options which
will meet environmental obligations, whilst minimising the impact upon its abstraction capabilities.
South East Plan
The Draft Plan projections and further initiatives by Local Authorities through PUSH are likely to
result in increased housing numbers but no changes to forecasts will be made until more is known in
the Final Draft expected in February 2008.
Water Resources in the South East
Following the development of a Bulk Supply to Southern Water Services in 2004 and the subsequent
drought conditions in 2005/06, a collaboration between companies and regulators is developing a
range of scenarios which seek to maximise the sharing of resources across the South East. This may
result in further Bulk Supplies from Portsmouth Water to other companies.
Climate Change
More data has been published which confirms that summers are likely to be hotter and drier and
winters milder and wetter. These suggest that in the longer term there will be the need for more winter
storage, both for the environment and for water supplies.
Page 5.
June 2007
Submission by Portsmouth Water to Hampshire County Council Climate Change Commission
The Future of Water Resources in South East Hampshire and West Sussex
Sustainable Buildings Code
Whilst there is a need and desire from those within the Industry to curb rising demands, the
Government appears to be minded to introduce voluntary arrangements for constraining per capita
consumption in new households.
The companies have been pressing Government to make the Code mandatory.
Water Resources Management Plan 2009
The Government has recently introduced regulations requiring the companies to prepare statutory
plans from 2009 onwards. Guidelines have been set out which require significant public consultation
in the period between March 2008 and their submission in April 2009
Customer Perspective
The Company recently conducted customer research which confirmed a significant majority of its
customers believe that they receive good service. It also reveals that whilst customers believe that
some improvements are necessary to the water supply service, they only expect to spend a little more,
around £3 p.a., on water bills to fund improvements.
The key priorities outlined in the research were:

Maintain reliable, safe and continuous water supplies

Improve the taste and smell of tap water

Maintain water supply networks and reduce leakage

Reduce sewage works' smells and relieve sewer flooding (not directly relevant to Portsmouth
Water)
Conclusion
Significant challenges lie ahead for the Company due to the uncertainty of Regulatory guidance such
as the Habitats Review of Consents, South East Plan and the effects of climate change. The Company
will work closely with its Regulators to provide a 'twin-track' approach of both managing demand
whilst also providing additional sustainable resources in a timely manner. The final solution
incorporates a package of measures which ensures a positive Supply/Demand surplus for the
Company and its customers. It also enables the Company to play its part in effectively managing the
water resources of the South East by considering the possibility of bulk supply transfers to
neighbouring companies.
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June 2007