With reference to Extract B and Figure 1, explain how the water infrastructure market in East Anglia illustrates the basic economic problem.
East Anglia Water Authority (EAWA) under pressure
The regional water authority (EAWA) has reported that groundwater extraction rates in several chalk aquifers are averaging 94%, far exceeding the environmental safety limit of 75% required to maintain local river ecosystems. By the end of 2021, requests for agricultural abstraction licenses and new residential water connections reached record levels.
Water resource planners indicated that commercial irrigation permissions for non-essential crops, such as sugar beet and potatoes, might need to be suspended or heavily rationed to guarantee continuous drinking water supplies for metropolitan areas and critical industrial cooling systems.
While the regional government allocated an additional £450 million over three years for infrastructure, water engineers argued this falls far short of the £1.2 billion required to build new reservoirs, upgrade leakage-prone Victorian pipelines, and install modern desalination facilities needed to cope with rising household demand from rapid housing development and lower average rainfall.
Furthermore, utility providers warned of a severe shortage of essential inputs: there is a critical deficit of hydrologists, drainage engineers, and specialized water-treatment chemicals.
