equipment (many companies still employed stone or even wooden pipes) continued to cause inefficiencies.


By the 1970’s there were 29 river authorities, 160 water supply undertakings and more than 1,300 sewage treatment authorities covering England and Wales, with serious under-investment in the distribution infrastructure. In an attempt to create economies of scale, the Water Act of 1973 brought together this plethora of water and sewerage undertakings into ten water authorities, each responsible for water supply, sewage treatment and river protection within its area, but these were still dependent on public funding and under-investment remained a problem. So in 1989 the ten water authorities were sold as Water Service Companies and passed into private ownership, bringing private sector investment (through loans and the issue of private shares) and private sector efficiency into the industry.


One of the Water Service Companies was Severn Trent, based in Birmingham and responsible for water management and supply, and waste water treatment and disposal, in the catchment areas of two of Britain's greatest rivers - the Severn and the Trent.


At the same time, the government created two regulatory bodies to ensure that the interests of the public were maintained:


– the Office of Water Services (OFWAT) had primary responsibility for setting limits on the prices charged for water and sewerage services, taking into account proposed capital investment schemes (such as building new wastewater treatment works) and expected operational efficiency gains, and;


– the National Rivers Authority (NRA) had responsibility for managing water resources, investigating and regulating pollution, flood controls and land drainage. In 1996 its responsibilities were passed to the Environment Agency.


The Environment Agency was created to implement the Environment Act 1995, with a brief “to protect or enhance the environment, taken as a whole", so as to promote "the objective of achieving sustainable development". The vision of the Environment Agency is of "a rich, healthy and diverse environment for present and future generations".


“This is a great initiative which was born out of our desire for continuous improvement in the way Severn T


rent works


and to ensure we meet future challenges using sustainable approaches.


One of the key future challenges we face is meeting the requirements of the Water Framework Directive – effectively treating wastewater before returning it to our region’


and the wider environment. T


s rivers - at the least possible cost to our customers aking innovative, flexible


approaches which allow us to minimise our carbon impact is key to this.


It’ s a challenge the Environment Agency shares and


working with our regulator towards this common goal is vital to success. What has emerged from our Balancing Carbon and Ecology project is a great example of true partnership working: aligning our interests whilst respecting the distinct duties and responsibilities of each organisation.”


“It is showing us that all of us with a stake in the water industry can work together to deliver the best possible outcomes for our customers, investors and the environment”


T ony Wray, CEO, Severn T rent Water


|64| ENVIRONMENT INDUSTRY MAGAZINE

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