WWT ROUND TABLE 2009
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although I do not know how we can bring
that about. There are things like dual flush,
low volume toilets, and lower volume
showers. If we could get those into the
standards for new buildings, that would be
very practical and make a difference.
Bob Baty But how do we do that? As an
industry in total, how do we make that
happen?
Martin Hurst We would probably have to
help on that one, with building regs and
water fitting regulations.
Tony Conway As I said at the beginning, it
is about having a joined-up, co-ordinated
plan – both a plan of action and a plan of
communication. If we are all singing from
the same hymn sheet, and there are some
really practical, short-term actions that in
themselves send signals, working with
standards, and longer term actions with Tony Smith: If metering works, the unit price will go up
more difficult things to bring about, it just
seems that they need to be co-ordinated. some extent, they are contracting some of how you handle that dysfunctional part of
this out to energy service companies. I think this where, if you go down to comparator
Martin Hurst On the subject of smart the jury is out. The fact that a number of services you can do exactly that and the
meters, the jury is still out for water. Water is companies have, for entirely legitimate efficiencies would show, along with all the
a discrete product, and not a continuous financial reasons, said to Ofwat: “Our usage rest of it. You have these anomalies, which
product like energy. The fact that the has gone down. You have to allow us to are all old chestnuts in the industry. You go
average water meter is in the street at the charge more,” suggests to me that there are back to highway drainage, where you are
moment; maybe the costs are different as some fundamental tensions here. We can picking up enormous costs that are nothing
well. There is a kind of intermediate, which expect incentivised companies to do so to do with the water industry per se, but
is the remote readable meter, which is not much, but whether the model is adequate they are part of sustainability of the
necessarily smart for the customer but it is to get us to 120 litres per head I simply environment. One of my worries is that
smart for the water industry and there may don’t know. people try to distinguish out these very
well be more to be said for that as an small features within it, without looking at it
efficiency device, if nothing else. Bob Baty For the water industry, which in the round, but you cannot actually extract
One of the big questions here is how far differs from other industries in my them, because they are in that environment.
can the current industry model take us in understanding and recollection is that the
terms of saving. Can you expect companies issue of cash negativity is still there. When Tony Smith That is very important. For
that make large amounts of their money we were privatised in 1989, it was customers, as we were saying earlier Bob, if
through water supply and treatment also to envisaged that the industry would be cash they know what they are paying for their
have a profit centre and business model negative for 10 years. Here we are, 25 years water and sewerage, they lump it all
that encapsulates water services? In other later, still cash negative and likely to together. It is slightly perverse in their minds
words, we don’t sell you the amount of continue to be so. The size of the capital – and I think Dan mentioned this point –
water, but we sell you the service that the programme, relative to the industry itself, is that if someone switches to a meter, they
water gives – so, if you want, we sell you enormous and always has been. might expect to save money but, for the
the shower experience and not the water There are big distinguishing factors reasons that Martin has just mentioned, you
that goes into the shower. between the provision of the water service will have a situation where, if metering
There is a question about how far and the provision of many of the other works, the unit price will actually go up. That
integrated companies can be expected to services. The challenge for our customers, does not really compute with the customer
do that, and how far you may need some once again, is that that distinction is totally and it is rather a dilemma.
other products. What you find with energy, invisible for them and they still see it as a There was also the point that the
where there is more margin in this, is that service to the home, the same as electricity underlying pressure over the next 25 years
even there, where they have their energy or gas. Because of the basic parameters and is for further price increases. Therefore, in
efficiency people and companies are, to statistics, however, it is not, and it is about terms of the customer’s goodwill and trust
in the industry, it is not impossible to do,
“The remote readable meter is not necessarily smart but that is quite an interesting
communication process. Customers ask,
for the customer but it is smart for the water industry”
what are they getting for their money?
June 2009 Round Table 19
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