Energy UK response to reserving water abstraction rights

Executive Summary

Energy UK supports the concept of reservation of water rights and agrees that a transparent approach is necessary, both for the energy sector and across sectors. It remains unclear where Nationally Significant Infrastructure Projects for power sit within the proposed hierarchy. Energy UK and the wider industry could only support the reservation of water abstraction rights if the process is transparent and includes the needs of all nationally critical sectors. As such, further detail is required.

The proposals set out in this consultation seem targeted toward strategic water resource options and other water company options. As outlined, the proposal could help with project planning and reduce uncertainty for those Water Company projects. However, the detail and metrics applied within the approach must be delivered alongside a comprehensive assessment of possible outcomes for all sectors. This includes in alignment with wider strategic plans for allocation of resources in different sectors, including, for example, energy network connections, telecommunications, and land rights.

As noted on page 15 of the consultation document, if all or most water in a catchment is reserved for strategic water projects ahead of need, it could prevent other, as yet unplanned, future developments from being sited in the catchment. Without sufficient alignment with broader strategic plans and government policy, this risks presenting a barrier to the delivery of the Clean Power by 2030 ambition and wider investment in hydrogen production, power generation, data centres, and other sectors identified in the industrial strategy.

The proposed approach offers advantages to the water sector based on lead times, as large water schemes have much longer lead times than large project developments in other sectors, for example, a power station. Ongoing reforms and recently implemented changes also mean that planning, permitting, and connections timelines across the energy sector are changing significantly in some cases. As such, water rights reservation may need to hold an embedded level of flexibility to enable faster access where a project is delivered ahead of the expected timeline.

Alignment with the estimated needs of a range of sectors could allow for the allocation of specific reserved water resources by sector, even where projects are yet to be defined, to ensure that not all water is allocated for Public Water Supply (PWS).

EA has recognised, on Page 16 of the consultation document, that the current approach does not provide an incentive for non-PWS sectors to engage in strategic water resources planning. Having recognised the importance of water resource planning, Energy UK’s member companies have engaged with the current water resources planning process via Energy UK groups and the independent Joint Environmental Programme (JEP).