february 2 0 0 5

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VISION OF THE INDUSTRY
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John Cuthbert Managing Director Northumbrian
Water
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O wad some power the giftie gie us To see
oursels as ithers see us Burns
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..... in a range of areas, companies in England
and Wales perform as well as or better than their
international counterparts. Ofwat
International comparison of water and sewerage
service 2005 report
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.. the companies performance has improved.
For example, between 1996 and 1999 the companies
achieved on average about 70 of the maximum OPA
score. In 2007-08, they achieved 88. Ofwat
Water today, water tomorrow Ofwat and
sustainability 2009
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Previous investment by the water industry has
transformed water quality and the protection of
the water environment in England and
Wales. Environment Agency website
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Privatisation and regulation of the water sector
is an undoubted success story Cathryn Ross,
Ofwat Director of Markets in Utility Week,
27.03.09
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The future will be difficult and it will be
expensive to tackle these challenges. In some
cases, we will need to make hard choices between
the needs of the environment and the needs of
people. EA Water for people and the
environment Water resources strategy for
England and Wales March 2009
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... the challenges faced by the sector in the
future will be different in scale and nature from
those of the past. ..... . If we are to meet
these challenges successfully, the status quo is
not an option. Cathryn Ross, Ofwat Director
of Markets in Utility Week, 27.03.09
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Risks are well understood, but not
absent. There are still significant risks
associated with regulation and these are likely
to dominate sentiment, at least in the near term
Bank of America Merrill Lynch
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...Ofwat has recently advocated an initial first
step accounting separation - which may lead to
eventual unbundling of the public water supply
industry across England and Wales. Such a shift
in the structure of the water supply industry
could provide real advantages for a more
resilient and sustainable management of our water
resources in the future. EA Water for people
and the environment Water resources strategy
for England and Wales March 2009
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Economic regulation of the water and sewerage
industries over the past 18 years has delivered
substantial benefits for customers. . At
present innovation levels appear to be low
compared to competitive sectors. Ofwat Review
of competition in the water and sewerage
industries Part II
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.. but we are concerned that, with some
exceptions, the UK water sector is heavily
reliant upon technologies, ideas, processes and
systems dating from the late 19th century up to
the mid-20th century. Council for Science and
Technology Improving innovation in the water
industry 21st century challenges and opportunities
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We do not believe that current levels of
incremental technology improvement will be
enough, particularly in terms of addressing the
most pressing challenges. Council for Science
and Technology Improving innovation in the water
industry 21st century challenges and opportunities
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Given the challenges facing the water sector,
innovation will be essential to ensure the long
term sustainability of the water industry. The
Government expects Ofwat to play a key role in
fostering and incentivising innovation in the
water industry. Defra Future Water
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I believe the system of economic regulation
should do more to encourage innovation, and the
right type of innovation. Cave Review Interim
Report November 2008
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Looking forward

• Climate change
• Evolution or revolution in regulation
• Customers needs and aspirations

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Water is the best of all things Pindar
(c522-c438BC)
Water is different and water is the
same Regina Finn, Ofwat
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Water is the best of all things Pindar
(c522-c438BC)
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