2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 2: COUNTRY ANALYSIS
Inland water quality (2001)
Category 1994-96 2001
RE1/A Very Good 27.1% 31.0%
RE2/B Good 31.5% 35.2%
RE3/C Fair 21.2% 18.0%
RE4/D Fair 10.3% 8.2%
RE5/E Poor 8.8% 6.9%
Worse/F Bad 1.0% 0.4%
Inland waters in the UK are regarded as Europe's cleanest. This reflects the favourable
geomorphology whereby short, fast flowing rivers discharge into the sea without the potential for
pollution build-ups seen in longer rivers such as in Germany or France. Between 1990 and 1998,
there was a net improvement in water quality in 25% of the monitored length of rivers and canals in
England and Wales.
Competition
Since 1998, there have been three announcements by the Government and Ofwat allowing greater
degrees of direct competition for the provision of water and sewerage services to industrial users. In
1998, users of more than 250Ml per annum were opened to competition. In 2000, this was extended
to users of 100-249Ml per annum and in 2002 to all users of more than 50Ml per annum.
The industrial and commercial water market in England and Wales is worth £1.65 billion, of which,
£1.26 billion is accessible to competition under current conditions via inset appointments and common
carriage agreements. The on site treatment of dilute industrial wastes is also open to competition, but
this is a separate market with its own specialist players.
Competition for industrial water is at best developing slowly in England and Wales and it has become
a reactive process whereby water tariffs are renegotiated to head off the threat of losing a large
customer. This has led to a ‘water broking’ market developing where companies seek to gain such
contracts on behalf of a client and in turn gain a percentage of the savings.
The England and Wales major user market by client size
Market segment Customers Water Sewerage Sources
50-99 Ml per annum 1,900 £200 million £220 million Ofwat, 2002/Author
100-250 Ml per annum 1,500 £300 million £330 million Author/Author