The integrated approach considers all elements of sewer system performance together, since each element of performance very clearly interacts with each other and ignoring such interactions usually has a negative impact on the value of any associated expenditure.
Such sewerage interactions are very common relating to a multitude of components of each of the four main aspects of performance.
The integrated approach requires consideration of all interfaces between a sewer system and its surrounding environment, including the interface with a wastewater treatment works and any receiving water bodies, e.g. rivers.
The integrated approach also requires consideration of the serviceability of sewer systems with the wider context of integrated urban drainage and an holistic, sustainable approach to this issue.
The large number of sewer system problem interactions clearly make associated risk management processes more complex, however, they also facilitate delivering much better value (costs versus benefits) when considering incurring any intervention (expenditure) to improve service and address performance problems. This is most readily achieved after acceptance and adoption of the key principles underpinning the SRM (Integrated) Approach.
The water industry in England Wales has evolved from being highly fragmented up to the latter decades of the twentieth century to the current structure of sewerage services provided by ten water and sewerage companies (WASC's) created in privatisation in 1989 and regulated mainly by two organisations.
The duties of a WASC are defined in the Water Industry Act, 1991 and in relation to wastewater services, are:
- To provide, improve and extend a system of public sewers, and to cleanse and maintain them to ensure its area is effectively drained; and
- to make provision for emptying its sewers and the treatment of sewage.
Each WASC is currently a subsidiary of a larger company and there has been a trend amongst the WASC's towards the outsourcing of services such as billing to other, unregulated, companies. One company, Dŵr Cymru (Welsh Water), has changed from a shareholder-owned plc to a not-for-profit mutual organisation and contracting out most of its operational activities.
The WASC's are subject to regulation from a number of bodies, but the most significant for sewerage are Ofwat and the Environment Agency.
Economic regulation is provided by Ofwat which was originally constituted as the ‘Office of Water Services' and was renamed in April 2006 the ‘Water Services Regulation Authority'.
Ofwat's principal duties are:
- To protect the interests of customers;
- To monitor standards of service and compliance with licence conditions;
- To ensure that companies can finance and fulfil their functions.
In carrying out its price setting duties, Ofwat must ensure that revenues are sufficient for companies to:
- Run their businesses day-to-day, to meet all service and environmental compliance obligations;
- Maintain asset systems for current and future customers;
- Ensure a sufficient balance between supply and demand for sewerage services; and
- Make other environmental improvements, for example reducing the number of homes at risk of sewer flooding.
Prices are set on a regular basis (currently every five years) and Ofwat monitors WASC expenditures and levels of service annually. Environmental quality regulation is provided by the Environment Agency (EA).
The EA's principal duties are to:
- Advise the Government on environment related issues;
- Be the leading public body protecting and improving the environment of England and Wales;
- Be the competent authority for implementation of the Water Framework Directive; and
- Work in partnership with a range of other organisations to reduce flood risk, promote sustainable development and secure environmental and social benefits.
The EA fulfils these functions by:
- Monitoring companies' compliance with their discharge consents;
- Recording the number of pollution incidents;
- Taking and monitoring enforcement action on pollution incidents.
Other organisations relevant to regulation of the water industry include:
- The European Union, which sets high level, legislation targets such as the Bathing Waters Directive and the Water Framework Directive, which are then incorporated into national legislation;
- The Department for Environment, Food and Rural Affairs (Defra); which sets the overall policy framework;
- The Competition Commission;
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Local Authorities were given statutory authority for providing water supplies in Scotland in 1946 and there was a continuous process of consolidation which reduced the number of providers to three.
The Water Industry (Scotland) Act, 2002, merged the three Water Authorities (East of Scotland, North of Scotland and West of Scotland) to form Scottish Water.
Scottish Water is not directly accountable to its customers but operates under the direction of Ministers of the Scottish Parliament, who set its objectives and investment priorities and appoints the economic regulator, the Water Industry Commission for Scotland (WIC). The Ministers are accountable to Members of the Scottish Parliament, MSPs.
Scottish Water acts in the same way as a commercial enterprise but without shareholders and the need to pay dividends. Scottish Water is responsible for treating and disposing of sewage and trade effluent. It finances its operations partly by charging for services and partly by borrowing.
The WIC was established in 1999 and defined under the Water Industry (Scotland) Act, 2002, as a non-departmental public body (NDPB) charged with promoting the interests of Scottish Water's customers. The WIC's modus operandi is broadly similar to Ofwat's, regulating prices by examining Scottish Water's costs and performance, setting targets to improve efficiency and monitoring performance. Like Ofwat, the WIC also monitors quality of services and acted as the customers' representative.
In June 2005 the WIC's role was amended to become responsible for determining maximum charge limits within the principles set and it is accountable to the Competition Commission for its decisions on charging.
The WIC's equivalent of Ofwat's Periodic Review of Prices is the Quality and Standards process. Q&S is the means by which the WIC assesses Scottish Water's revenue requirements. Q&S I covered two years, from April 2000 to March 2002, and was implemented by the three previous Water Authorities; Q&S II covered four years, from April 2002 to march 2006, and Q&S III will cover two four-year periods, April 2006 to March 2014.
Under the Q&S process, Scottish Ministers have an input in seeing Scottish Water's priorities.
Environmental quality regulation is provided by the Scottish Environmental Protection Agency (SEPA), which is responsible for environmental protection and improvement and has a similar brief to that of the EA in England and Wales.
Other relevant organisations are similar to those in England and Wales:
- The European Union;
- Competition Commission;
- Water Customer Consultation Panels, Scotland (WCCPS); independent bodies which represent consumers.
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Water Services in Northern Ireland are currently provided by Northern Ireland Water (NIW) a government owned company which is subject to quality regulation by the Department of the Environment (DOE) in the form of the Drinking Water Inspectorate and the Environment and Heritage Service (EHS).
Major restructuring of the company is currently under way. The Water and Sewerage Services (Northern Ireland) Order 2006 changed the status of the former Water Service from a government department to a Government owned company (a GoCo), operating in the same way as a private sector company. This change took effect in April 2007.
Northern Ireland Water will operate as a private sector company with full cost recovery. Water and sewerage charges will therefore be introduced for all domestic customers, though the Government is committed to reducing water charges for certain groups of customers. There will be changes to the existing charging structure for non-domestic customers.
Water Services in Northern Ireland are currently provided by Northern Ireland Water (NIW) a government owned company which is subject to quality regulation by the Department of the Environment (DOE) in the form of the Drinking Water Inspectorate and the Environment and Heritage Service (EHS).
Major restructuring of the company is currently under way. The Water and Sewerage Services (Northern Ireland) Order 2006 changed the status of the former Water Service from a government department to a Government owned company (a GoCo), operating in the same way as a private sector company. This change took effect in April 2007.
Northern Ireland Water will operate as a private sector company with full cost recovery. Water and sewerage charges will therefore be introduced for all domestic customers, though the Government is committed to reducing water charges for certain groups of customers. There will be changes to the existing charging structure for non-domestic customers.
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