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The below Parliamentary question was asked by Lord Moynihan on 2015-09-17.

To ask Her Majesty’s Government whether, as part of their water resource management responsibilities, water companies have been asked to look beyond their boundaries to secure sufficient water supply to satisfy future customer demand.

Lord Gardiner of Kimble

The Department for Environment, Food and Rural Affairs, Ofwat and the Environment Agency published joint water resources management planning guidance in 2012. This included the expectation that water companies should consider all options to balance supply with demand, including water trading, cross boundary solutions and third party supplier solutions. Updated guidance is currently being prepared for publication for the next planning round.

The below Parliamentary question was asked by Lord Moynihan on 2015-09-17.

To ask Her Majesty’s Government what steps they have taken to ask water companies to do more to co-ordinate and implement flood defences; whether they plan to launch a full and transparent tender process in the market to meet this objective; and whether water companies’ work on flood defence is intended to be outwith their regulated business.

Lord Gardiner of Kimble

Water and sewerage companies’ responsibilities include managing the risk of flooding from surface water or sewer systems. They are also expected to work in partnership with the Environment Agency and Lead Local Flood Authorities to manage the risks of all sources of flooding within a catchment.

The Government has therefore not asked water companies to do more to co-ordinate and implement flood defences, nor is it planning to launch a tender process in the market to meet this objective.

The below Parliamentary question was asked by Lord Moynihan on 2015-09-17.

To ask Her Majesty’s Government whether they intend to publish best practice guidelines as part of water resource management plans to ensure that the right solutions can be delivered at competitive prices.

Lord Gardiner of Kimble

The Department for Environment, Food and Rural Affairs, Ofwat and the Environment Agency published joint water resources management planning guidance in 2012. This included the expectation that water companies should consider all options to balance supply with demand, including water trading, cross boundary solutions and third party supplier solutions. Updated guidance is currently being prepared for publication for the next planning round.

The below Parliamentary question was asked by Lord Moynihan on 2015-09-17.

To ask Her Majesty’s Government when they plan to bring forward legislation for a new water abstraction licensing regime; and whether they propose to introduce a one-size-fits-all approach to reform of the sector.

Lord Gardiner of Kimble

We are currently working on finalising the legislative approach to abstraction reform. We remain on track to deliver abstraction reform in the early 2020s.

Our aim is to introduce fairer, more flexible and more efficient systems to manage water abstraction tailored to differing catchments within a national approach.

The below Parliamentary question was asked by Lord Moynihan on 2015-09-17.

To ask Her Majesty’s Government whether they are on target to deliver retail competition for non-household water and sewerage services in England in April 2017; whether they plan to publish a clearly defined timetable and a schedule of the trigger points necessary to meet this deadline; and whether Ofwat are able to impose financial penalties for breaches of licence conditions on companies which are not ready to become a licensee for the provision of retail services for all non-household customers by that date.

Lord Gardiner of Kimble

We are on track to open the non-household retail market for water and sewerage services in April 2017. All partners in the Open Water programme (the Department for Environment, Food and Rural Affairs, Ofwat and Market Operator Services Limited), are strongly committed to meeting this date. A clear timetable of the activities, which will need to be completed before the market can open, is published on Ofwat’s website and updated each month. Market Operator Services Limited is working closely with all relevant companies to ensure that they will be ready for market opening in April 2017. Incumbent water companies who want to compete in the new national retail market will need to establish a separate legal entity and apply for a Water and Sewerage Supply Licence, although they are not under any obligation to do so. Ofwat sought views on the appropriate conditions for licensees operating in the new retail market through its consultation on new Water and Sewerage Supply Licences in June 2015. It will be able to impose financial penalties on licensees who do not comply with these conditions.

The below Parliamentary question was asked by Lord Moynihan on 2015-09-17.

To ask Her Majesty’s Government whether they intend to commission a third-party audit of the Thames Tideway Tunnel, to be made available to assist water companies to adopt best practice when managing contracts for new reservoirs, in particular regarding the optimal use of outside contractors and specialist companies capable of constructing reservoirs.

Lord Gardiner of Kimble

The Government has not planned any third party audit. We note the National Audit Office published a report in June 2014 on the risks and governance of the Thames Tideway Tunnel and may choose to write a further report. Copies of the strategic and economic case for the TTT, cost-benefit analysis and peer reviewed supporting evidence will be placed in the House Library.

In respect of contracts for new reservoirs, Ofwat have said with reference to the Thames Tideway Tunnel that it is keen to explore whether this delivery model could work for other big projects in the water sector. We are not aware of any ongoing applications to construct new reservoirs.