Agenda item

Anglian Water will be in attendance to provide Performance Monitoring Panel members with a presentation.

The Regional Engagement Manager and Pre-Development Planning Manager from Anglian Water provided a comprehensive presentation as attached at Appendix A to these minutes.

Members considered the presentation and made the following comments:

• As Anglian Water was obliged to create a connection, how could they object to an application that would likely be approved or introduce a condition that prevents occupation of a property until a connection is agreed to.
  • The Pre-Development Planning Manager responded that pre-occupation conditions, called a Grampian condition, had been tested in the courts and should be a consideration in the planning process. Local Plan policies did include infrastructure capability as a consideration when determining applications.
  • It was appreciated that Anglian Water were one of many consultees (non-statutory) and they didn’t want to prevent growth but needed to be sure that the environment was not negatively affected by this growth.
• There was a danger that the local authority would not be able to deliver the housing targets set by the government.
• Where water recycling centres (WRC) were labelled ‘at capacity’, did this refer to normal flow or excess rainfall?
  • The Pre-Development Planning Manager confirmed that this was determined on average flow put back into the environment which changed year on year. Conversations were ongoing with the regulators and government on how to move forwards with this.
• Did the objections made by Anglian Water only to major applications?
  • The Pre-Application Development Manager confirmed this applied to both major and minor applications.
  • The Regional Engagement Manager added that once a permit had been exceeded, no further connections could be made. Funds were not available to deliver infrastructure improvements at the rate required due to the regulator capping customer bills and increased housing numbers since Anglian Water’s current five year business plan (2025-2030).
• Significant investment had been made into the infrastructure in Sutton Bridge, what stage was this at?
  • The Pre-Development Planning Manager confirmed that this WRC was green and therefore had capacity to accept new connections and the WRC was compliant with the dry weather flow element of the permit.
• What was the effect on isostatic discharge and to what extent would pumps be installed to assist with the tides, given rising sea levels?
  • The Pre-Development Planning Manager agreed to take the question regarding isostatic discharge away.
  • The Regional Engagement Manager responded that long term adaptations and delivery strategies were in place looking 25 years ahead. Resilience was built into the asset delivery programme and Anglian Water had the most highly monitored network.
  • Risks were always a factor, and reservoirs were being built above sea level to try and combat these effects.
• Did Anglian Water reclaim minerals and drugs out of the water?
  • The Regional Engagement Manager responded that everything that went into the WRC’s was recyclable, but that they did not reclaim minerals and drugs from waste water. All waters and solids were recycled, and gas was extracted from this process generating energy to help power the operational site.
  • Science was developing to remove things such as microplastics and forever chemicals – PFAS from water but currently Anglian Water were working to the permits provided by the government.
• Was there a historical lack of investment in water infrastructure in South Holland?
  • The Regional Engagement Manager commented that water was a privatised industry where customer bills had been managed by Ofwat determinations of water company investment plans so private investment had been sought. Since Covid, expectations had changed, particularly with regard to the environment, that Anglian Water were now trying to keep up with.
  • Previously, more money had been invested in water resilience to keep clean water and avoid hosepipe bans but this had now shifted to a focus on environmental improvements based on customer feedback and tightening environmental regulations.
• How many times had a planning application been refused due to an objection by Anglian Water?
  • The Pre-Development Planning Manager responded that the pre-application condition had only been in place for a year so was relatively new. Anglian Water were now using planning legislation to try and prevent new connections rather than the Water Industry Act.
  • The Regional Engagement Manager added that Anglian Water were engaging with more planning case officers and offering to speak to both them and planning committees.
• What were the timescales for any investment intentions in WRC’s currently labelled as amber.
  • The Pre-Development Planning Manager indicated that the ambers asked for a planning condition which was connected to the Anglian Water business plan and growth schemes outlined within it. Schemes within this plan would be delivered by 2030 but no timeframes were available for each individual investment.
• Were the indicated improvements works minor or major?
  • The Pre-Development Planning Manager confirmed that these were all major works costing millions of pounds each. It was a complex process involving design, pre-application with the Environment Agency and permit regimes.
• It was noted that development would naturally go to any areas that were labelled as amber or green.
  • The Pre-Development Planning Manager acknowledged that these would be more attractive areas for developers.
• Should investments have been planned for areas currently labelled as red, given that the local plan had only been adopted recently?
  • The Pre-Development Planning Manager responded that a growth scheme would only have been asked for in those that are amber. No condition would be requested for reds as it would not be dischargeable.
• Would any refusal based on an Anglian Water objection hold up on appeal?
  • The Pre-Development Planning Manager responded that Anglian Water were prepared to attend any appeal to provide expert witness testimony.
  • Legal opinion also supported this, and it had already been established that this was a material planning consideration.
  • The KC opinion regarding a pre-occupation condition could be provided to members as some authorities were already applying this.
• How much capacity did the WRC’s listed as green actually have?
  • The Pre-Development Planning Manager agreed to provide this information to Members.
  • It was noted that development type was looked at when considering any objections to applications in these areas so capacity could differ based on this factor.
• It appeared a holding situation was in place until 2030 when upgrades to infrastructure had occurred in amber areas as there were no other areas to place new development.
  • The Pre-Development Planning Manager responded that Anglian Water were currently lobbying government to use local plan information to inform growth schemes.
  • They were currently asking for local authority planning officers to sit on a working group considering long term growth as part of the Drainage and Wastewater Management Plan to influence this.
• Some residents in areas that were labelled red would be happy that no there was no further capacity but this would not assist the local authority in achieving its house building targets.
• What would happen if the local planning authority refused to put the pre-occupation condition on the application?
  • The Pre-Development Planning Manager confirmed that this risk would need to be managed, and engagement would be required with the Environment Agency about pollution.
  • The Regional Engagement Manager added that the Environment Agency could prosecute Anglian Water for pollution.
• What if developers were to install their own package treatment plant on site?
  • The Pre-Development Planning Manager confirmed that this was an option where descriptive works were allowed but approval of the Environment Agency was required..
  • It was noted that the Environment Agency policy was to approve in rural areas but unlikely to do so in urban areas.
• Pleased that this was Anglian Water’s position as infrastructure needed to be in place to build new houses and it was a shame that other bodies didn’t do the same.
• Concern was raised as to the consequences on the authority should housing delivery targets not be met.
  • The Regional Engagement Manager commented that a balance needed to be struck between development certainty and improving infrastructure.
  • The Pre-Development Planning Manager added that Anglian Water were constrained by the regulators cap on customer bills as these funded WRC investment growth schemes.
• Was there a connection charge for developers?
  • The Pre-Development Planning Manager responded that a connection charge was in place to physically make the connection and also an infrastructure charge purely for foul networks across the whole region, not for the WRC’s.
• Did Anglian Water bill payers pay the fines for WRC’s being over capacity?
  • The Regional Engagement Manager confirmed that shareholders paid the fines, but they would be less likely to invest if Anglian Water was regularly being fined.
• What was the possibility of Anglian Water adopting a private sewerage treatment works?
  • The Pre-Development Planning Manager agreed that a conversation could be undertaken outside of the meeting.
• It was important that the information provided by Anglian Water be circulated to MPs.
  • The Regional Engagement Manager responded that a blueprint for growth would be published in January to set out challenges to the government and MPs.
• Could it be explained how the business plan for Anglian Water had been set up without taking into account the number of houses to be built within the local plan?
  • The Pre-Development Planning Manager commented that this will be included as part of their submission. Where local plan figures had been used previously, these had been rejected by the regulator who used Office for National Statistics data.
• Would the money used for infrastructure investment come from shareholders or borrowing?
  • The Regional Engagement Manager responded that it was a mixture of both, and the investment was paid back to investors through billpayers over the life of those assets.
• Was account taken of extra income received from new properties?
  • The Regional Engagement Manager commented that Anglian Water were encouraging people to use less water and use it more efficiently. The money from billpayers could then be used to invest in future infrastructure assets.
• Queried the number of farms actually on water meters.
  • The Regional Engagement Manager responded that Anglian Water had the highest density of water meters in the UK, following a campaign to install as many of these as possible.
  • These were now starting to be replaced with smart meters that had updated technology to help customers better manage consumption and identify leaks.
• Were improvements made to storm overflow systems paid for through billpayers?
  • The Regional Engagement Manager confirmed that the funding for these came from both shareholders and ultimately billpayers.
  • A list of improvements made within the South Holland area would be provided.
• It seemed unfair on billpayers that there had been a lack of investment by Anglian Water in the water infrastructure within the district.
  • The Regional Engagement Manager responded that this was due to a mixture of the regulators capping bills for a significant period of time and increased issues related to climate change.
  • It was noted that investment was being caught up on in relation to WRC’s.
• Who was responsible for the collapse of and unblocking of drains following a storm?
  • The Regional Engagement Manager confirmed that  most road guilles/ drains were the responsibility of Highways, while foul sewers (and some surface water drains) were Anglian Water’s responsibility.
  • It was noted that flooding responsibility was a complex challenge across a lot of organisations. Information would be shared with Members on who to call if a flood occurred.
• Concern that shareholder dividends had increased while bills had stayed the same.
  • The Regional Engagement Manager confirmed that shareholders took modest dividends of around 2.9% return on average and they had recently committed to not taking a dividend for the next four to five years.
• Had Anglian Water been in direct contact with residents in hotspot areas for non-flushable items?
  • The Regional Engagement Manager confirmed that this was the case, with both door knocking and posters being put up in streets.
  • Individual properties could be pinpointed, and Anglian Water did have powers of prosecution, but the main focus was on education.
• Residents needed to be kept accurately informed of how long works would be taking placed and raised a particular issue in Spalding.
  •  The Regional Engagement Manager agreed that this was fair feedback and would remind repair teams to ensure a robust comms plan was in place for future works.
• Would the new Lincolnshire Reservoir be connected the SPA project, and if so, would the majority of the water be going to Cambridgeshire?
  • The Regional Engagement Manager confirmed that they would be connected but the water would go into the network to be used wherever needed.
  • Having a reservoir would also become a go-to destination with a visitor centre, walkways and leisure facilities being considered.
• Asked about use of water butts to water gardens.
  • The Regional Engagement Manager advised that Anglian Water had a partnership scheme to retrofit water butts in some flooding hot-spot locations.

Following the presentation, Members wished for the following comments to be passed to the Planning Department:

• There was a need to create more awareness of the water infrastructure issue and the case law and legislation to back up this decision.
• Ask officers to investigate the validity of pre-commencement conditions suggested by Anglian Water
• Explain what the effects of restriction of connection at some water recycling centres would have on future plans for delivery.
• What sort of consequences would the authority expect from central government should the number of required houses not be delivered.

A briefing note from the Assistant Director – Planning and Strategic Infrastructure on this issue would be provided to the next meeting of the Performance Monitoring Panel.