Full Breakdown
Rising Water Costs Amid Severe Drought
By Drooid · · How we work
Background and Licensing Context
The Environment Agency warns that, without intervention, England’s water supply could fall short by 5 billion litres per day by 2055. Current abstraction licences charge users only the cost of producing the licence, not the intrinsic value of the water extracted. The agency’s director of water, Helen Wakeham, says ministers have asked for a review of how water is valued and priced. The existing system allows large industrial users—such as oil refineries, chemical plants and paper mills—to pay less per litre the more water they consume.
Data & Statistics
- Less than 1 % of English businesses consume more water than the daily needs of 10 million people.
- Water UK estimates datacentres in England use 6.6 million litres of drinking water each day; with the target to triple datacentre capacity by 2030, use could rise to 19.8 million litres daily.
- The Environment Agency’s projection of a 5 billion-litre daily shortfall by 2055 underscores the scale of the challenge.
Official Statements, Responses, and Criticism
Jon Chappell, deputy director of Water UK, called the situation “unforgivable” and a “genuine failing of government.”
Greenpeace UK’s chief scientist and policy adviser, Dr Doug Parr, criticised the disparity, noting that everyday citizens bear higher bills and hose-pipe bans while large companies enjoy cheaper water per litre. He argued that the cheapness of water discourages responsible management.
Verbatim Quotes
- “The reason datacentres are water-hungry is because water is so cheap,” — Wakeham. Photograph
- “The overarching message is that water is so cheap that often it’s not managed, because it’s cheaper just to use more water,” — Helen Wakeham, the director of water at the Environment Agency
