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This appendix to the National Framework for Water Resources for England defines our expectations of regional groups, what is essential for them to do and include in their regional plans, and what they should do.

Building on successes of current regional water resources planning

Regional groups have made significant progress in their planning of resilient water supplies in England to 2050 and beyond. The regional plans have helped drive positive changes, exploring potential for developing and sharing supplies between sectors as well as a wider catchment management approach. Ambitious demand targets for water efficiency and drought resilience have been adopted by water companies and accompanied by large investment in strategic water supplies, such as new reservoirs, desalination schemes and water recycling options. National Framework ambition remains for further collaborative approach that ensures an improved environment and the security of future water supplies across all sectors.

Regional groups need to be supported to build upon their existing achievements, and to overcome barriers for meaningful collaboration. This is central to deliver multi-sector planning and cross sector engagement for water, agriculture and energy and drive improvements to water supply resilience, water efficiency and demand management and environmental protection

Responding to the national water resources challenge

Regional water resources groups are established to help contribute to resolving the national water resources challenge we face, as articulated in this National Framework. Alongside high-level expectations to enable this to happen, we have identified expectations that fall under 4 key themes.

Figure 30: National Framework themes

These themes are:

• long term water resources planning to enable growth
• strengthening multi-sector planning and resilience
• planning to protect and improve the environment and address environmentally unsustainable abstraction
• supporting an integrated approach to water management

Regional groups have an important role in helping to identify how best to provide an efficient (best value), sustainable and resilient supply of water for all water users in their region over at least the next 25 years (section 1.2). This includes developing and refining a long-term environmental destination to address abstractions which are currently damaging the environment and protect and improve the water environment in the context of future pressures. To achieve this, each regional group will deliver a regional plan, which sets out:

• a water resource assessment
• a regional environmental destination
• evidence of multi-sector engagement
• a list of options
• adaptive pathways to manage uncertainty

While each region faces its own challenges, and approaches have to be flexible, regional groups also need to work together with compatible and consistent and legally compliant regional plans. Where regional plans are within or affect Wales, Welsh legislation requirements must be fully considered. Furthermore, where a regional plan covers operational areas of water company wholly or mainly in Wales the Welsh government sets out the policy and legislative framework within their guiding principles for water resource plans that must also be considered.

We appreciate that there remains some uncertainty around funding for multi-sector water resources planning. While there is no obligation for sectors other than public water supply to engage with regional planning we do have an expectation for those sectors to engage and fully participate. As a result, we acknowledge that any expectations that involve multi-sector planning will be delivered on a best endeavours basis, subject to funding availability and the sectors’ ability to engage. We do however expect regional groups, alongside regulators and government, to actively promote and enable other sectors to benefit from regional water resources planning. We will work with government departments and regional groups to explore sustainable funding routes to ensure success.

High level expectations

Contribute to resolving the national need as set out in the National Framework

We expect regional groups to produce regional water resources plans that seek to improve security of supply for all water users. These plans are vitally important for improving our water resilience across the regions.

The National Framework sets out how much water the nation is likely to need, and the regional contribution required to meet that need (section 3). The National Framework is primarily focused on England, but any proposals that may affect Wales must have due regard to the interests of Wales.

We expect regional groups to develop plans that endeavour to meet water needs across all sectors for their region and how this contributes to the national need. To do so, it is necessary that regional plans seek to:

• increase the number and range of options
• increase resilience to drought
• support growth and promote water efficiency
• increase connectivity between regions for water transfers
• support a multi-sector approach
• consider wider government priorities including net zero carbon goals
• protect and improve the environment and address environmentally unsustainable abstraction

Through plans, we expect regional groups to ensure there is sufficient water for nature recovery, resilience and adaptation whilst also supporting sustainable climate-resilient growth. Doing so will support growth by helping to prevent situations like those recently experienced, where development has been affected by water resource availability.

Regional plans should be accessible to the water users they represent. We expect regional groups to present their plans in a clear and engaging way.

Maintain a strategic overview of regional water resources priorities and activities

The regional groups are uniquely positioned to have strategic oversight over water resources priorities and activities in their region. We expect this to span the activities by incumbent water company members to protect public water supply, and the activities to protect water supplies across other sectors. This includes oversight of the development of strategic resources options in the region.

Appoint a chairperson that is independent from members of the group

We expect each regional group to appoint an independent chair to its board. To help meet the challenges we face, regional groups need to produce collaborative multi-sector plans and ensure the appropriate representation of different sectors in the planning process. The independent chair, through management of the board, will be able to work across different water using sectors to make sure they are represented at the right level and the best place in decision making processes. They will ensure that regional governance structures are robust and effective, being fit-for-purpose to deliver multi-sector planning. An independent chair allows the regional group’s board to monitor the management of the regional group on behalf of those it represents. By taking an unbiased approach, the chair will be able to improve collaboration and joined up planning, resolving conflicts of interest.

Produce and publish a statement of intent on drought 

We know our changing climate means we will likely experience more frequent and more severe droughts in the coming years. The role of regional groups during drought is therefore becoming even more important, as collaboration between and within sectors is critical to successfully mitigate impacts on the environment and all society.

We expect each regional group to produce a statement of intent on drought (section 12.5). It is essential that this is published and consulted on as part of the wider regional plan. This statement will provide clarity upfront on the role it will take in both drought planning and management. It will set out:

• the activities the regional group will undertake and collaborate on
• what it won’t do
• how the regional group will work with member organisations and neighbouring organisations and regional groups
• how it will link with existing drought governance and drought plans
• its role with other sectors

This could include activities such as:

• coordinating interaction and communication across the region, and across sectors
• coordinating communications messages and campaigns, leading on central messaging
• facilitating discussion and exploration of collaborative opportunities to share resources
• developing a consistent approach for implementing water use restrictions (by water companies)

The statement should clarify whether one or more drought groups will be set up at a regional level (or already exist), and how group aims and operations change before, during and after drought. It should establish who is involved within the region, and beyond the region, and how it will link to the National Drought Group and the Wales Drought Liaison Group, and sub-groups. As every region is unique, with varying characteristics and challenges, we know each group will need to take a different approach to its involvement in drought. Therefore, each statement will be different to ensure it is tailored to and fully reflects the regional group position.

We do not currently expect regional groups to develop drought plans, but they are ideally placed to support collaboration across all sectors during a drought to help improve drought management and response, and this statement of intent will provide clarity on the role they will take.

Theme 1: Long term water resources planning to enable growth

Regional groups have a strategic role in ensuring long term water resources plans are in place across the region and nationally to enable growth. This includes supporting the oversight of the strategic resource options (SROs) being developed and reconciling these SROs with water resources planning.

Delivering the following expectations will enable this role to be met:

• ensure the public water supply elements of regional plans are reflected in and aligned with WRMPs (Essential)
• forecast regional supply and demand over at least 25 years (Essential)
• should look ahead beyond 25 years to ensure long term water needs and option longevity are considered.
• provide preferred and additional adaptive solutions to public water supply deficits and proposed solutions to help address non-public water supply needs (Essential)
• for public water supply, use methodologies that align to the water resources planning guideline and are strategically compatible across regions, being fully consistent where possible (Essential)
• assess possible implications of government commitments with water resources implications such as those relating to net zero carbon targets and artificial intelligence (AI) and data security (Essential)

Ensure the public water supply elements of regional plans are reflected in and aligned with WRMPs

We expect solutions to public water supply deficits identified in regional plans to be reflected in and implemented through water company water resources management plans (WRMPs). Likewise, water company WRMPs and drought plans will need to align with the regional plan and its outcomes.

As funding for WRMP actions is enabled through Ofwat’s price review process as part of water company business plans, regional groups must follow the principles of the water resources planning guideline. We expect that consistent assumptions, methods and outcomes will be used in developing the best value solutions to secure a sustainable supply of water and protection of the environment.

Forecast regional supply and demand over at least 25 years

A regional plan needs to identify how best to provide an efficient, sustainable and resilient supply of water for all water users in the region over at least 25 years. We expect regional groups to forecast supply and demand over at least 25 years. Forecasts are expected to encompass both public water supply and non-public water supply sectors, though there may be less certainty for those outside of public water supply.

Within the 25-year period, different sectors may require options and solutions over shorter periods or at specific moments. Local evidence and insights from abstractors in the region must drive multi-sector forecasts as we expect these to underpin regional plans and decisions.

We expect regional groups to work with each relevant sector to define planning periods and decision points that meet the needs of that sector and incorporate these into a 25-year multi-sector regional forecast.

We expect forecasts to:

• include the impacts of climate change
• include demand management and improved efficiency
• ensure environmental needs are included
• include the impacts of population growth
• include the water demand needs and growth ambitions of relevant water using sectors, including those associated with government’s net zero and AI strategies
• take into account regional ambitions for economic growth and new development, working with local authorities

Look ahead beyond 25 years to ensure long term water needs and option longevity are considered

A fundamental component of regional plans is the supply and demand forecast over at least 25 years. Strategic solutions to improve resources may need to look further ahead than 25 years, to ensure they are safeguarded and maintained in the best way against future pressures. Regional groups should also be mindful of how demand will change over time and make certain that decisions made now are appropriate for the long-term. Regional groups should look at supply and demand forecasts beyond 25 years to help identify the best solutions.

Provide preferred and additional adaptive solutions to public water supply deficits and proposed solutions to help address non-public water supply deficits

Regional plans need to take a strategic approach and be flexible and resilient to future uncertainties. We expect regional groups to produce a preferred solution to public water supply deficits, supported by additional solutions, that will be adaptive, scenario tested and flexible to:

• enable a secure water supply across different scenarios
• meet demand scenarios across public water supply
• plan for uncertain additional needs across other sectors
• achieve sustainable abstraction and environmental protection
• adapt to climate change and mitigate its impacts

The solution must set out clear decision points between different pathways as part of an overall programme of investments and options. Uncertainties driving adaptive planning need to be clearly presented. New or revised options must be proposed and considered to meet current or future deficits in public water supply. Nature based solutions should be explored as part of the wider options appraisal, as set out in theme 3. The preferred solution will need to align with those of neighbouring regional groups to ensure the plans will collectively meet the national need, using appropriate reconciliation processes to do this. Any new or revised transfer options from Wales to England must also meet Welsh Government expectations as set out in their guiding principles.

Use methodologies that are aligned to the water resources planning guideline and are strategically compatible across regions, being fully consistent where possible

It is important that regional water resources plans are aligned to statutory water resources management plans. The requirements of these statutory plans are established through the water resources planning guideline, therefore regional plans should adopt methodologies that meets this guideline. This is to ensure good consistency and alignment both within a region and with other regions, which is particularly important in the context strategic solutions spanning multiple regions.

Demonstrate how they have taken account of future population and economic growth scenarios and regionally specific sectoral growth plans, presenting the potential implications of these on regional water demand

It is important that regional water resources groups actively plan for future growth. We expect this to account for population forecasts, housing targets and requirements, and associated local plans, as well as wider economic growth scenarios. Where there are regionally specific sectoral growth plans, it is essential that these are considered in the regional water resources plan and efforts are made to present how previously unplanned additional water demands could be met.

Theme 2: Strengthening multi-sector planning and resilience

Water resources planning is a primary function of water companies and the statutory processes to plan effectively and ensure water resources resilience are well established. In contrast, many other water using sectors do not have the same existing planning processes and are at different stages of understanding their expected future water demands and supply availability. Regional groups have a vital role in helping to strengthen multi-sector water resources planning and resilience. The experience, leadership and coordination regional water resources groups can offer will be essential to achieve this.

We appreciate that there remains some uncertainty around funding for multi-sector water resources planning. While there is no obligation for sectors other than public water supply to engage with regional planning we do have an expectation for those sectors to engage and fully participate. As a result, we acknowledge that any expectations that involve multi-sector planning will be delivered on a best endeavours basis, subject to funding availability and their engagement. We do however expect regional groups to actively promote the benefits of being engaged in regional water resources planning. We will work with regional groups to explore sustainable funding routes to ensure success.

Delivering the following expectations will enable this role to be met:

• take a multi-sector approach (Essential)
• take account of immediate water resources resilience pressures facing water users in region and facilitate short term activity to help find solutions to these (Essential)
• engage with stakeholders to enable them to be active participants in relevant decision-making processes (Essential)
• assess possible implications of government commitments with water resources implications such as those relating to net zero carbon targets and AI and data security (Essential)
• should work with other sector members to identify and present opportunities for water efficiency and demand management outside of public water supply within the region

Take a multi-sector approach

This means:

• including forecasts of water demand for relevant non-PWS sectors
• facilitating and proposing options and solutions for multiple sectors to meet their water needs and improve resilience
• identifying where sectors can work together to resolve issues and co-ordinate local water resources activity across sectors where there is a risk of duplication
• promoting the establishment and work of Water Abstractor Groups and Catchment Partnerships to represent local abstractor needs

A multi-sector approach will improve water resources resilience of relevant regional sectors and secure sustainable management of water resources. We expect water demand needs and growth ambitions of relevant other sectors to be assessed and incorporated into the regional balance of supply and demand. Regional groups must include in assessments where future regulatory action to reduce abstraction licences held by other sectors may result in increased demand on public water supply. The plan must set out proposed options and solutions for different sectors to meet their demand and highlight where sectors can work together to resolve issues.

It is essential that regional group identify and act on opportunities to join up sector led proposals for resource development. To aid this, we expect regional groups to promote the establishment and work of WAGs within and across sectors, together with Catchment Partnerships.

Ideally, regional groups will evaluate how Strategic Resource Options can help support non-PWS demand for water. We would also expect regional groups to identify alternative pathways when resolving unsustainable abstraction issues.

Take account of immediate water resources resilience pressures facing water users in the region and facilitate short term activity to help find solutions to these

Many water users in regions face immediate challenges around water resilience, including during dry weather and drought. We expect regional groups to provide a forum to support water users and facilitate activity to help find solutions. It is important that the knowledge and expertise of the water industry members in each region is shared with other water users, water retailers and New Appointments and Variations (NAVs). There needs to be an appreciation that some water users will be at the initial stages of water resources planning and effective engagement and support from regional groups will be crucial helping other water users see the benefits of water resources planning and the regional groups.

Engage with stakeholders to enable them to be active participants in relevant decision-making processes

Regional groups need to strengthen existing relationships and identify new groups who are affected by water scarcity. By engaging stakeholders across sectors in water resources planning, regional groups will expand opportunities for cross-sector mutual benefits. Stakeholders’ views can help shape how plans might prioritise actions identified to meet environmental requirements (within timeframes allowed by statutory deadlines).

We expect that regional groups review and agree with sector organisations their appropriate level of representation to ensure that all relevant voices are engaged and heard in the regional planning process. A regional group should be inclusive, with all stakeholders able to freely share their issues and understand the needs of others.

Assess possible implications of government commitments with water resources implications such as those relating to net zero carbon targets and AI and data security

The UK government’s net zero carbon targets are expected to include significant growth in sectors including hydrogen production, carbon capture storage and wider renewable energy technologies. Some of these activities could require significant additional quantities of water, as set out in section 7 of this National Framework for Water Resources.

Furthermore, AI and data security are a significant priority for government. The recently published AI opportunities action plan sets out the need to establish AI growth zones to facilitate the accelerated build out of data centres. These plans and subsequent anticipated AI infrastructure plans are important context for regional groups.

It is essential that regional groups consider these latest national plans and priorities and the implications of these on their region’s water resources, setting out clearly where new investment in supplies is expected to be required to meet these needs.

Should work with other sector members to identify and present opportunities for water efficiency and demand management with water retailers, NAVs and other sectors outside of public water supply within the region

There are major opportunities to improve water efficiency across water users. These actions are likely to be important in efforts to improve water resources resilience, enable growth and ensure sustainable abstraction levels within catchments. We consider the regional groups to be strategically placed to help drive action to identify these water efficiency opportunities and this is something each regional group should be doing. If successful, this can help drive resilience and sustainability across catchments and the region overall. We appreciate government and regulators also have a role to play in facilitating water efficiency and demand management by other sectors, water retailers and NAVs.

Theme 3: Planning to protect and improve the environment

We expect regional plans to have a strong focus on environmentally sustainable water abstraction across catchments. Regional Groups have a significant role in assessing the current and long-term water needs to meet environmental requirements. We call the approach to assessing long-term environmental needs in water resources planning Environmental Destination.

Expectations under this theme are that Regional Groups:

• have an environmental destination plan (Essential)
• take a catchment approach (Essential)
• comply with Strategic Environmental Assessment (SEA) and Habitats Regulations Assessment (HRA) legislation (Essential)
• should coordinate and facilitate local uptake of nature-based solutions where they deliver value for water resources
• should embrace and promote opportunities for a variety of market mechanisms such as third-party bidding systems for options and opportunities around funding for nature-based solutions

Have an environmental destination scenario plan which:

• meets regulatory requirements to address abstractions which are currently damaging the environment
• provides future protection and resilience for the environment against water resource impacts from climate change and future demands
• meets final Environment Agency and Natural Resources Wales guidance established through water resources planning

We expect regional plans to include planning for changes to the current abstraction regime to address current environmentally unsustainable abstraction, as well as planning for reduced availability of water for abstraction in the future due to climate change.

To reach the environmental destination, regional groups need to develop a plan to meet a range of future environmental needs, considering all future water needs as a bundle to inform option selection and best value investment decisions and set out an appropriate plan of actions.

Take a catchment approach by:

• seeking to ensure existing abstraction across all water users at a catchment level is environmentally sustainable
• taking a proactive role in finding solutions to catchment problems
• considering catchment options as part of the solution to water resources deficits

Working with stakeholders on innovative solutions to catchment problems is fundamental to improving the water environment, and regional groups are in a strong position to identify where these catchment options may be best developed.

Comply with SEA and HRA legislation for public water supply

Water companies have a statutory duty to undertake environmental assessments on their water resources management plans where required, including WFD regulations, HRA and SEA.

Regional groups are uniquely placed to help coordinate this assessment, particularly to ensure appropriate assessment of proposals in-combination assessment and transboundary impacts across the region. We expect this to be reflected in the regional plan.  

Practically this could entail a collation of the information in existing water company assessments with an overarching assessment bringing this together at a regional level, or a regional group leading the environmental assessment work across the region, with company specific assessment to be adopted by individual water companies.  

We expect regional groups to undertake their own due diligence to ensure full compliance with their legal environmental obligations.

Comply with SEA and HRA legislation for non-public water supply

We acknowledge that many non-public water supply options set out in the regional plan will be uncertain and may not be well developed or have funding secured for their delivery. We expect regional groups to be proportionate when undertaking environmental assessments relating to these options, as integral design features, timing and locations of proposals may not be known. 

Full environmental assessments will be the responsibility of the non-public water supply parties involved in the option. We expect regional groups to undertake their own due diligence to ensure full compliance with their legal environmental obligations.

Promote, facilitate and plan for local nature-based solutions where they deliver value for to water resources

Regional groups should promote and facilitate local uptake of nature-based solutions where they deliver a real benefit to water resources. Nature-based solutions have the potential to deliver multiple benefits for water resources and the environment and regional groups should review their integration into catchment-based approaches to help catchment water balances.

Embrace and promote opportunities for a variety of market mechanisms such as third-party bidding systems for options and opportunities around funding for nature-based solutions

In co-ordinating and facilitating local uptake of nature-based solutions that benefit water resources, regional groups should consider innovative approaches to funding that could ensure nature-based solutions are delivered and maintained.

Theme 4: Supporting an integrated approach to water management

• should demonstrate leadership in an integrated approach to water management across catchments
• actively seek options that include wider benefits, such as resilience to floods and droughts, improvements to water quality, and resilience improvements to drainage and wastewater systems, in alignment with drainage and wastewater management plans (DWMPs) (Essential)
• should work with other risk management authorities to ensure that long term adaptive planning for flooding and coastal change is better coordinated with the next and subsequent cycles of planning for water and wastewater investments

Should demonstrate leadership in an integrated approach to water management across catchments

Regional groups should consider all pressures on the water system collectively rather than in isolation.  This integrated water management needs to be through a multi-sector approach, involving water users across catchments. Healthy catchments hold more water in soils, filter pollutants, and provide essential habitats. This provides benefits to water quality, wildlife, flood resilience, and drought resilience. Rivers and groundwaters can store more water throughout the year. This provides a more stable water supply for households and businesses and improves sustainability of abstractions.

We expect regional groups to do the following

Actively seek options that include wider benefits, such as resilience to floods and droughts, environmental restoration and recovery, improvements to water quality, and resilience improvements to drainage and wastewater systems, in alignment with DWMPs

It is important that water resources options are not considered in isolation. When considering options, we expect regional groups seek options with wider benefits and account for the benefits in decision making. We expect environmental restoration and recovery to be considered when identifying options. Resilience to drought and flooding can come hand in hand and are an important part of options appraisal. Furthermore, where options are required to enable growth, drainage and wastewater systems are likely to also be an important consideration and therefore options that achieve these multi-benefits will be help drive best value solutions for society.

Work with other risk management authorities to ensure that long term adaptive planning for flooding and coastal change is better coordinated with the next and subsequent cycles of planning for water and wastewater investments

As the climate changes, we are facing greater risk of flooding and coastal changes that will pose significant additional and uncertain pressures on water resources and waste water infrastructure. Regional groups should take a lead to ensure that their long-term adaptive plans account for these risks and drive investment to manage their impact of water infrastructure.