During the PR24 price review process numerous challenges arose for bioresources, which required rapid policy development and led to an intense period of work for all parties. This culminated in a significant increase in allowances (Base & enhancement) from £3.4 billion in PR19 to £5.6billion at PR24 (increase in enhancement spend from £61 million, to £1.9 billion), and supported actions associated to WINEP SUiAR and long-standing issues around IED.

Extensive engagement with companies, Defra and the Environment Agency led to key policy changes to provide flexibility within PR24 to give companies the opportunity to take low/no regrets decisions and achieve improved outcomes for customers and the environment. This included amendments to the base models to incorporate greater funding for AD/AAD, introducing enhanced cost sharing for bioresources and IED, and developing a notified item to deal with uncertainty related to application of treated sludge to agricultural land. 

Looking forward, the Ofwat innovation fund has successfully awarded five projects that will provide further insight into opportunities for enhanced/alternative sludge treatment and management activities.

Following the publication of the Independent Water Commission final report, the UK government has set out a new direction for the water sector with the formation of a new regulator. For bioresources, the report recommends that there should be tighter regulation of sludge spreading on farmland, recognising that sludge may contain PFAS; pharmaceuticals and toxic metals, which have public health impacts, while also indicating that bioresources will be included within the Water Environment Framework. This marks an opportunity to reset the sector, so it delivers better outcomes for customers and the environment.