FIRMA - Water scarcity and demand management in response to increasing environmental restrictions, predictions for climate change and rising consumer demand in the Thames region, England

Southern England is the most densely populated and driest region of the UK. The largest river, the Thames, supplies the majority of the population. The water industry was privatised in 1989. The effect of privatisation has been new institutional arrangements in the regulation of the water industry. While continued improvement in wastewater treatment is an issue, the main challenge for water utilities in southern England is balancing supply and demand. The hot summer and drought of 1995 highlighted the vulnerability of water supplies to large scale climatic disruptions. Policy questions include:

• What factors influence domestic demand for water, both in reducing short-term peaks and long-term use?
• How can demand management, as an institution of rules, strategies and shared norms among diverse stakeholders, ensure reliable water use?
• What institutional arrangements result in various alternatives for augmenting supplies?
• What is the residual risk of water scarcity, after demand management has been implemented?

3 main issues are investigated

• continued improvement in wastewater treatment
• balancing supply and demand
• ensuring reliable water use through demand management, as an institution of rules, strategies and shared norms among diverse stakeholders