Ofwat has published its response to the independent review ‘Learning lessons from the 2007 floods’ conducted by Sir Michael Pitt. Ofwat has made detailed comments on the urgent recommendations and those interim conclusions set out in the review.

With regard to risk management, the regulator has emphasised  the importance of adopting a cost/benefit approach. In Ofwat’s view it is vital that investment and adaptation is planned in a way that maximises value in seeking to manage the vulnerability of assets and services to flood risk. Ofwat has emphasized that  it is not possible to protect all assets against all extreme events and  that the experience in 2007 points to a need to focus on genuinely critical assets.

The Ofwat response has also highlighted the need for long-term adaptation and improvement of surface water drainage arrangements In Ofwat’s view focussing only on increasing underground drainage capacity would be enormously expensive and could distract attention away from other more sustainable methods of managing flood risks.  The regulator believes that a multi-agency response is required with wider thinking about urban design, design standards and land use planning such as using green spaces to receive flood waters.

Ofwat are proposing to challenge the water companies to demonstrate an understanding of flood risks to service as part of their long-term asset management strategy.  They intend to work with the industry and other stakeholders to develop a consistent and coherent framework for assessing flooding risk and identifying cost beneficial measures to improve resilience of critical measures. to improve resilience of critical assets.  During 2008 Ofwat will develop guidance to ensure that it informs business plans for the 2009 price review (PR09). The water companies will be expected  to be able to demonstrate that they have identified the right set of measures to improve resilience, along with the timeframe for taking action.

Ofwat will also review the issues raised by the Hull IRB report, including the changes made to Hull's drainage arrangements in recent years and their operation during the floods - in particular, to ensure that Yorkshire Water takes actions required to provide the right level of protection for consumers.

The regulator has also recommended that Water UK should review the industry's 'mutual aid' arrangements and bring water companies together to examine lessons on emergency planning,   and that Defra amend the legal right to connect to public sewers with a view to promoting integrated drainage solutions.