03.09.10 Hosepipe ban lifted in North-West
For the first time in 14 years a hosepipe ban was imposed this July on parts of Cumbria, Greater Manchester, Lancashire, Cheshire and Merseyside after the water in many reservoirs in the area dropped to only half the normal level.
The good news for the millions of customers affected is that United Utilities have now lifted the ban in view of the heavy rainfall over the past few weeks.
The real reason for the ban was the dry start to 2010, the driest in fact since records began in 1929. The summer was less dry (in fact, parts of Liverpool suffered flash floods after half an inch of rain fell in just one hour) but still reservoir levels were low hence the ban on using hosepipes for watering the garden and washing the car.
Customers were generally diligent in saving water and only 90 formal warnings had to be issued up to the end of July. In all, customers saved a whopping three billion litres of water.
Reservoir levels are still low in the Pennines but those in Cumbria and North Wales are back to average levels for the time of year. Water from North Wales and Cumbria will be moved to the reservoirs in the Pennines utilising the integrated pipe system.
In response to critics who say the water company would be better off repairing leaks, United Utilities has said that costs are prohibitive and that a hosepipe ban every 15 years or so is preferable to the huge increases in bills necessary to ensure a leak-free network.
23.08.10 Health scare over fake Zam Zam water
Leicestershire County Council has issued a warning to Muslims in the area regarding the dangers of drinking fake holy water. It warned that bottles of Zam Zam water should be avoided as it could be contaminated with high levels of arsenic.
Zam Zam water is a sacred water that comes from a well near Mecca in Saudi Arabia which has been flowing for millennia. Whilst pilgrims on the Hajj often take the water out of the country for personal use, they are not allowed to export it for commercial use.
Leicestershire County Council warned that the Zam Zam water on sale could have up to three times the legal limit of arsenic, as well as containing nitrates which can increase the risks of developing cancer, and should therefore be avoided at all costs.
Leicestershire County Council has warned that as well as being dangerous, the Zam Zam water might not even be real. If people see it in a shop they have been warned not to buy it as it is illegal and poses a safety risk.
The warning came two days before the start of Ramadan, the Muslim month of fasting. This is also not the first time it has come to attention, with the FSA (Food Standards Agency) and Trading Standards issuing similar warnings in previous years.
For shops selling the water, the punishment could be severe. The penalty for selling unlicensed water is an unlimited fine or two years’ imprisonment, and traders also face a £20,000 fine or six months in prison if found to be selling water that is not safe for consumption.
David Bull, the head of trading standards at Leicestershire County Council, said that anyone with any knowledge of Zam Zam water being sold should contact Trading Standards.
13.08.10 Consumers returning to bottled water
Despite campaigns by environmental groups, it appears that consumers are returning to bottled water. A recent statement by the International Bottled Water Association argues that public opinion has moved away from a desire to ban bottled water, with consumers instead opting to return in droves to a product they view as both "healthy and convenient".
Following a 1.4% increase in bottled water sales in the UK in 2009 and the recent decision by Concord, in Massachusetts, to reverse its ban on the sale of bottled water, it appears that the industry is in the midst of a comeback.
The news will come as a blow to environmental campaigners, who have targeted single-use bottled water due to the level of non-recycled waste that the industry produces, with campaigners pointing to recent estimates that 90% of bottles are not recycled. With the 38 billion water bottles ending up in landfill sites throughout the world in 2006 contributing to potentially devastating environmental implications, consumers now seem to be prioritising convenience over climate concerns.
Jonny Forsyth, Senior Drinks Analyst at Mintel, a market intelligence group, suggests that “after years of not having to worry about the pennies, the first question consumers started asking when purchasing was 'Is this value for money?'" He later stated: "However, with consumer confidence rising over recent months, consumers have started to loosen their purse strings and bottled water has been one of the beneficiaries.”
In spite of predictions of a terminal decline in the UK market after volume sales fell by 11% between 2006 and 2008, it appears that renewed consumer confidence has sparked a return to popularity for bottled water.
05.08.10 Thames water accept responsibility for sewage leak
Thames Water has been forced to accept responsibility for a sewage leak that killed hundreds of fish along a 5km stretch of waterway.
The Environment Agency was called to Silchester Brook in Hampshire last week after members of the public spotted sewage entering a watercourse. Current estimates suggest that the leak has killed hundreds of fish, including perch and trout.
Having accepted the blame for the incident, Thames Water have turned their attention to discovering the cause of the accident by launching an investigation to establish the cause of the tragic event. As part of their apology, Thames Water have also offered to restock the stretch with fish once a cleanup operation is over.
As well as looking into the potential impact of the leak, the Environment Agency was quick to thank locals whose speedy reaction enabled the agency to act quickly. An investigation into the cause of events has also been launched by the Environment Agency. In addition to initiating a cleanup operation following the death of hundreds of fish, the agency has also had to act to prevent other animals from drinking the polluted water.
Ben Govan, an Environment Agency officer, informed the media that “Environment officers are currently on site collecting evidence and sampling, and we have staff taking further samples from the river and doing some ecological monitoring.”
Reports have also suggested that the number of fish deaths could have been far higher if it hadn’t been for the quick thinking and actions of local farmers, who apparently saved hundreds of fish, including chub, trout and perch, by rescuing them from the toxic water and placing them in a makeshift aquarium on a local farm.
28.07.10 Water companies not worried about Ofwat plans
Despite Ofwat’s desire to introduce further competition to the UK’s water market, water companies are unconcerned by current Ofwat plans. A recent Ofwat briefing to the City had proposed an initial move towards the liberalisation of the water industry in England and Wales, something that had appeared to be a concern for industry chiefs.
On the other hand, consumers, who perceive the current UK water industry as providing a poor service that has been left unchallenged due to the regional monopolies, had welcomed the move. Meanwhile, the news initially caused investors to fear a drop in water stocks, which have been performing well compared with the rest of the market in the first few months of the year.
However, shortly after Ofwat's presentation, Lakis Athanasiou at Evolution Securities responded by stating that: “We believe competition can only be developed by: creating margin to entice new entrants in [...] and creating high returns for this new construction to entice new entrants. To achieve this without pushing up prices to customers, returns to existing assets will need to fall.”
The confidence that underpinned this speech is based upon industry experts' beliefs that for the proposals to become law, the current government would have to introduce primary legislation, something that would be unlikely to take effect until 2012. As the current UK government attempts to ease the UK out of its financial difficulties, it is unlikely that Ofwat’s plans will be prioritised.
The reality of the situation has also been reflected by Ofwat, who themselves have admitted that the government is unlikely to back its proposals.
