Frost Radar: UK Water Utilities, 2025

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The United Kingdom, despite having relatively high rainfall and water availability compared to many other countries, faces water stress primarily because of climate change, which has changed rainfall patterns and caused droughts. During the 2022 drought, some UK water utilities implemented an unprecedented hosepipe ban.

Droughts are expected to become more frequent over the next 10 years, leading to water security concerns. According to Ofwat, the water service regulation authority of England and Wales, the nation will require 5 billion litres of additional water to meet demand based on population growth by 2050.

In this context, UK water utilities are implementing multipronged, short- and long-term strategies that include developing new water infrastructure, reducing leaks, and exploring alternative, climate-resilient water sources, such as desalination and the reuse of treated wastewater.

The UK government has set a target to reduce per capita water consumption to 110 litres per day by 2050, and targets for the water industry as a whole to become net zero by 2050. Ofwat also has set targets to reduce leaks by 8% (with FY 2018 levels as a baseline) by 2030 and by 55% by 2050. Between 2020 and 2025, UK water utilities reduced leaks by about 15%. Such targets have driven innovation and investments in smart water solutions, specifically internet of things sensors for leak detection, AI/machine learning data analytics, and smart water metering.

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