Water Resources Management Plan

Manx Utilities are currently finalising its Water Resources Management Plan. This is a document that sets out how a secure supply of treated water will be available for Isle of Man residents over the next 40 years. Studies undertaken indicate that we currently have adequate water stocks to cope with an extreme drought event but due to increasingly unpredictable weather patterns and population growth, this may not be the case in the future. As such, the plan will set out how this issue is to be resolved to ensure we are suitably prepared and we minimise the likelihood of having to bring in restrictions on water use during future summers.

There are two methods by which our water resources challenge can be resolved – providing more water for the future or using less (or a combination of both).

Increasing stocks/resources either through a new reservoir or a desalination plant are both very expensive, environmentally damaging and carbon intensive. This would create a significant burden on both current residents and future generations.

Reducing water consumption through a combination of Manx Utilities reducing levels of leakage and customers using less water is, we currently believe, a far more cost effective sustainable and responsible approach.

There are some smaller scale projects that help improve water stocks such as increasing the ability to transfer water from north to south, but in isolation these options are not sufficient.

Significant investment has been and continues to be made each year in pressure management schemes and water mains replacement. Leakage levels are currently lower than ever have been recorded. This is a continuous challenge as our ageing water infrastructure requires continual replacement.

The future requires a collaborative approach to ensure a positive outcome and Manx Utilities is fully aware that it needs to play its part in reducing water consumption if it expects its customers to do the same.

Initial investigations suggest that domestic water consumption (the amount of water we use at home) is higher on the Isle of Man than in other adjacent jurisdictions such as the UK and the Channel Islands.

Whilst education and media campaigns do help to reduce water use, linking the cost of water to the amount used has been found to be effective in reducing the amount of water people use. This is usually done through the installation of water meters, and this has proven to be successful in those locations previously mentioned and hence why we are now considering this course of action. Furthermore, modern technology allows the flow meters to detect leakage which further reduces demand and saves water.

Most properties currently pay for their water through their rates, based on the properties’ rateable value, with a number of commercial properties already having water meters installed. Should charges for metered water be introduced then this would be instead of paying through rates, not in addition to.

If water meters were introduced, then Manx Utilities would intend to create a charging mechanism that brought in a similar amount of revenue to the current system in order to cover its costs of supplying water. If a lower amount of water is used by Isle of Man residents, Manx Utilities would see small savings in chemical use and electricity, and this would go towards the cost of installing the meters.

It is likely that, following the installation of water meters, some customers would pay more and some would pay less for their water, but it could be a fairer system than relying on the rateable value of a property. There would however be a financial incentive and opportunity for everyone to use less water.

Any charge for water through usage would replace the charges made through rates.

Customers should be assured that if water meters are installed in the future the objective of this would not be to increase Manx Utilities’ revenue, but to reduce the water consumption of island residents, both domestic and commercial, and so reduce the level of investment in the future that customers would need to fund.

Manx Utilities is a Government owned statutory board (publicly owned). No dividends are paid to shareholders and no profits go to any individuals or businesses. Any surplus (profit) made in a year is used to fund investment in our infrastructure to benefit future generations.

There is potential to use water usage within a mechanism for charging for wastewater services. This is not a priority and is something that would be considered in the future.

A number of studies need to be completed in order for us to conclude that the installation of water meters is definitely part of the solution. Reference in the Pricing Strategy intended to highlight that this is currently being considered and may be implemented in the future.

There is a significant amount of work to be done prior to meters being installed at properties and customers being charged for what they use. The first activity is to determine whether the benefits would justify the costs. Assuming this is the case, then a suitable charging mechanism will need to be determined.

In the short term Manx Utilities intend to commence with some pilot schemes using staff members and community volunteers to assist in determining average water consumption and which meters and supporting technology are most effective etc. This will help in creating an implementation plan that sets out how Manx Utilities intends to bring this to fruition.

The intention of water metering would be to help in creating and maintaining a sustainable water resources strategy for the future which will benefit the island’s water resources as well as the environment.