On 8 December 2011, the Department for Environment Food and Rural Affairs released a White Paper titled, "Water for Life", which is described as a "call to action" and a "vision" for the future management of water.

Key focus areas of the White Paper include:

  • tackling water pollution: it is proposed to take forward the new "catchment-based approach" to water quality and diffuse pollution;
  • tackling over-abstraction: after consultation, it is proposed to introduce legislation to reform the abstraction regime early in the next Parliament, implementing the new regime fully by the mid to late 2020s;
  • a water sector that focuses on its customers: it is proposed to introduce a package of reforms to extend competition in the water sector by increasing choice for business customers and making the market more attractive to new entrants. In particular, the special merger regime that applies to the water sector may be loosened. It is also proposed to support changes to help developers receive much higher standards of service from water companies, and to increase the transparency of the infrastructure and requisition charges the developers pay. "Statutory" market codes are also proposed to be introduced;
  • supporting growth and innovation: it is proposed to reduce the barriers to trade in abstraction licences. Further, for the Environment Agency to work with sectors, such as the energy generation industry, to develop a shared understanding of future water demand and risks to both the abstractors and the environment;
  • affordability and bad debt: draft guidance has been published by DEFRA for both water companies and OFWAT in relation to social tariffs for those having problems paying their bills;
  • reducing high household bills in the south west: it has been decided to fund South West Water to enable it to cut bills by £50 per year for all household customers until at least the next spending review period; and
  • changing the way we use and value water: water efficiency measures are to be encouraged and incentivised, such as voluntary water efficiency labelling on products, the promotion of sustainable drainage systems and the provision of water efficiency advice and hot water saving measures via the Green Deal.

It is stated that the Government will publish a draft Water Bill for pre-legislative scrutiny in early 2012 and introduce a Water Bill as soon as Parliamentary time allows.

The EU is to release an important policy response to current and prospective challenges facing water resources in the EU. This is to be called "Blueprint to Safeguard Europe's Water" and it is expected to be released in 2012. Many may wish to review the content of this Blueprint when considering the White Paper as it is likely that it will overlap areas covered in the White Paper.

Please click here for the full text of the White Paper.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

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The original publication date for this article was 09/12/2011.