The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)

All water companies plan for secure supplies through their 25-year water resources management plans. These set out how a company will provide for a sustainable supply and demand balance taking into account pressures such as population growth and climate change. But that does not mean that they can avoid introducing restrictions in times of water shortage: typically they plan for restrictions once every 20 years. To plan for resources that would meet demand in any circumstances would build in significant additional costs, which would fall to their customers, and would have impacts on the environment too. And so all companies take a risk-based approach, balancing a planned level of service, to include measures such as hosepipe bans, against the costs customers are willing to pay for a secure supply.

Looking more broadly at the UK situation we must recognise that the United Kingdom has finite water resources, with some parts of England having less water per person than many hotter and drier countries. Using our water supplies wisely so that we have what we need for essential domestic and industrial purposes, while minimising the impact on the natural environment at a time of climate change and population growth is the challenge for the future. It is now 20 years since the current regulatory regime was put in place and the White Paper I plan to publish next summer will examine the options for reforming the industry to drive greater efficiency and improving the way we value and use our water resources.

[Source]