Resilience – performance measures, costs and stakeholder communication
Project Status Project Completed
The Water Act 2014 gave Ofwat a new primary duty to further the resilience objective in the water industry, including highlighting the need for long-term resilience of water and wastewater systems and service provision when faced with increasing external stresses, such as environmental pressures, population growth and changes in consumer behaviour.
For business plans, companies will need to be able to:
- Develop measures and targets which reflect customer priorities
- Demonstrate that proposed costs are efficient
Meeting resilience requirements will also affect supply-demand planning. Updated WRMP and Drought Plan guidance moves water resources planning away from simply testing supply systems against historic droughts, with the intention of better understanding resilience to other types of drought. For example the latest Water Resources Planning Guideline states: “By testing your plan to a number of different droughts and aligning with your drought plan, you should be able to identify areas where resilience needs to be increased to meet customer and stakeholder expectations, or government policy”.
Improving resilience can involve choosing appropriate investments in the short-term to reduce risk for future customers, where the probabilities of risks occurring and their impacts are often uncertain difficult to predict. This makes it problematic to develop measures and targets. In addition, communicating risks in order to assess customer priorities poses difficulties.