Energy & Utilities

Meet your water industry regulatory duties

A water supply business in the UK must hold an appointment or licence as a water undertaker, meet drinking water quality standards, comply with the water fittings regulations, register and inspect any large raised reservoir, hold an abstraction licence for raw-water collection and hold environmental permits for discharges. This guide takes you through each regulatory duty in turn.

UK-wide
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UK-wide

Related guides in Compliance & Legal

The water supply industry is regulated by multiple bodies. Ofwat is the economic regulator in England and Wales; the Drinking Water Inspectorate (DWI) enforces water quality standards; the Environment Agency (or Natural Resources Wales, SEPA, NIEA) issues abstraction licences and environmental permits for discharges; and the Environment Agency (or NRW, SEPA, DfI) enforces reservoir safety. In Scotland the Water Industry Commission for Scotland (WICS) regulates retail competition, and the Drinking Water Quality Regulator for Scotland (DWQR) enforces quality standards. Work through each section that applies to your business.

A. Appointment or licence as a water undertaker

In England and Wales, a monopoly water undertaker must be appointed by Ofwat (or the Secretary of State) under the Water Industry Act 1991. New entrants supplying retail or wholesale services need a water supply and sewerage licence (WSSL) from Ofwat under the competition regime introduced by the Water Act 2014. Conditions of appointment or licence are enforced by Ofwat as economic regulator.

B. Scottish water industry licensing (WICS)

In Scotland the public water network is provided by Scottish Water. The retail market for non-household customers is competitive: licensed providers must hold a licence regulated by the Water Industry Commission for Scotland (WICS).

C. Drinking water quality

Water supplied for human consumption must meet the wholesomeness standards in the Water Supply (Water Quality) Regulations, with sampling, treatment and reporting duties enforced by the Drinking Water Inspectorate. In Scotland the Water Quality (Scotland) Regulations 2010 apply, enforced by the Drinking Water Quality Regulator for Scotland. In Northern Ireland the Water Supply (Water Quality) Regulations (Northern Ireland) 2017 apply.

D. Water fittings regulations

Water undertakers must enforce the Water Supply (Water Fittings) Regulations 1999 to prevent waste, misuse, contamination and backflow in the supply system, and must be notified of certain installations. In Scotland the equivalent controls are the Water Supply (Water Fittings) (Scotland) Byelaws 2014.

E. Reservoir safety

If your business operates any large raised reservoir for raw-water storage, you must register it with the enforcement authority and have it supervised and inspected by a panel engineer under the Reservoirs Act 1975. The threshold in England, Wales and Scotland is 25,000 cubic metres above natural ground level; in Northern Ireland it is 10,000 cubic metres under the Reservoirs Act (Northern Ireland) 2015. The enforcement authority is the Environment Agency in England, Natural Resources Wales in Wales, SEPA in Scotland and the Department for Infrastructure in Northern Ireland.

F. Abstraction licensing

Collecting raw water from rivers, lakes or groundwater above the threshold requires an abstraction licence under the Water Resources Act 1991 from the Environment Agency (England) or Natural Resources Wales. In Scotland, abstraction is authorised under the controlled-activities (CAR) regime administered by SEPA. In Northern Ireland the Water Abstraction and Impoundment (Licensing) Regulations (Northern Ireland) 2006 apply.

G. Environmental permits for discharges

Discharging treated water or process water to surface water or groundwater is a water discharge activity requiring an environmental permit under the Environmental Permitting (England and Wales) Regulations 2016. In Scotland the equivalent is a CAR licence from SEPA; in Northern Ireland a discharge consent from the NIEA.

  1. 1

    1. Secure your appointment or licence as a water undertaker

    Apply to Ofwat for an appointment or WSSL; in Scotland, apply to WICS for a retail licence.

  2. 2

    2. Meet drinking water quality standards

    Comply with the Water Supply (Water Quality) Regulations and DWI reporting duties.

  3. 3

    3. Enforce the water fittings regulations

    Prevent contamination and backflow in the supply system.

  4. 4

    4. Register and inspect any large raised reservoir

    Register with the enforcement authority and appoint panel engineers.

  5. 5

    5. Hold your abstraction licence

    Apply to the Environment Agency or NRW for an abstraction licence.

  6. 6

    6. Hold your environmental permits for discharges

    Apply for water discharge permits for any discharges to controlled waters.

What to do next

With the regulatory duties in place and the workplace spine operating, confirm the whole picture with the water supply compliance checklist. Start from the router if you are not sure which guides apply to you.

Official sources

Authoritative guidance on water supply regulation.