Water and wastewater reform

 Let’s talk about water and wastewater. A subject that is rarely discussed in Scotland for two main reasons. Firstly, it rains a lot, so we don’t think there is a water scarcity issue. Secondly, with a public water service, we have avoided the shambles of the privatised system in England and Wales. However, both of these assumptions are misleading.

While we are better placed in terms of water use than many countries (2 million people worldwide die annually due to water-related causes), water scarcity is a growing problem, particularly in the east of Scotland. The chart below shows that half the population will face water scarcity by 2050, with drought conditions occurring every 3 years instead of every 20. The population is rising (13% p.a.), we have large rural areas that often rely on poor private supplies, and there is growing industrial demand caused by developments, including large data centres.

In response to this, we need to use water more efficiently. Water consumption in Scotland is higher than in other European countries, partly driven by cultural assumptions about abundant water and by very limited household metering. 

Scottish Water has a big investment programme (£886m last year) to strengthen the ageing water and wastewater infrastructure. However, this is only 40 per cent of the need, so they prioritise. There is also the cost legacy of the Private Finance Initiative (£170m p.a.). New household design developments are increasing water run-off, with 2300 properties at risk of sewer flooding (up 60% by 2050). Scottish Water has limited monitoring of outflows compared with England, although progress is being made.

To reduce investment costs, we need to use water more efficiently. That includes reusing water as recommended by a World Bank report. This could save 50-80 litres of water a day in a typical household. We also need to invest in green infrastructure (green roofs, permeable pavements and retaining gardens), mandating some of these through the planning system. Modern data and computer models make this more achievable. All of this requires replacing the outdated legislation, as the EU is currently doing. The Scottish Government has consulted on this, but progress has been glacial.

That leaves reforming our current public service structure. I set out much of this in a paper for the STUC, based on research commissioned by the University of Strathclyde. This essentially involves abolishing the costly and unnecessary regulatory model, which is identical to the failed English model. As the recent scandals have highlighted, the Water Industry Commission is no longer fit for purpose, if it ever was. This model has also driven the stealth privatisation of Scottish Water, which now has 400 private contractors (2,000 staff) delivering around half the service. Some 45 per cent of wastewater treatment was privatised using PFI, and the entirely unnecessary non-household marketisation has created additional costs for businesses. 

A public service model would enable a better industrial relations approach, with a worker director and a partnership structure based on the NHS Scotland model. It is hardly surprising that Scottish Water increasingly looks like a failing English water company (with managerial bonuses to match), when most of its board comes from the privatised sector. There is also a case for greater decentralisation, including better community engagement on water solutions. 

As a country, we need to better understand the issues surrounding water and wastewater, and a Citizens’ Assembly approach might help. We may be in a better position than England and Wales, but that won’t last much longer unless we act now.