Cost-Benefit Analysis of AMP6
Catchment Management Schemes

The study identified, quantified and monetised the likely impacts of catchment management schemes and performed a CBA of each scheme in relation to conventional water treatment solutions. For a range of optimistic and pessimistic land management scenarios, changes in concentrations of nitrate, pesticide, algae and colour were predicted for 19 surface water and 6 groundwater Safeguard Zones and used to model potential OPEX and CAPEX savings. Non-market valuation techniques were applied to value in monetary terms the wider benefits of the proposed schemes for biodiversity, recreation and carbon storage where these were critical to the business case. A sensitivity analysis was performed to assess how robust the CBA was to changes in the key assumptions and parameter values used in the analysis.

The results were used to support the company’s PR14 business case to extend its catchment management programme to non-owned land.

Karen Light head of water & Environment Tel: +44(0) 1793 865138