 What I really want to talk about over the next few minutes is some of the things that have happened in the last 12 months here in the UK, since I last spoke at the IWA event in Lisbon about a year ago. Now, I want to talk a bit about the challenges that are facing the water sector in the UK at the moment. I'm sure that those challenges here in the UK will have significant resonances for others in the world. And as I do that I'll talk a little bit also about how I think the sector needs to step up to address some of those challenges and crucially what economic regulation can do to help. So as I said a year ago, more or less, we were in Lisbon and I remember speaking to you there as we were in the middle of our 2014 price review. Well of course we finished that price review in December 2014 and I think it really will deliver some excellent results that forward customers here in England, Wales and for the environment. And just to give you some of the headlines from that, one of the things that we will see over the next five years in England and Wales is more than 44 billion pounds of investments going into the sector. Just to give you a feel for the scale of that, that's around 2,000 pounds over the next five years for every household in England and Wales. Across the 18 companies that we have in England and Wales we're going to see more than 500 tailored performance commitments that reflect what the customers of those companies really want to see and are willing to pay for. We'll see for example a third reduction in incidence of internal sewer flooding by 2020. We will see cleaner water at 50 beaches. We will also see I think really significant strides in terms of water efficiency with a saving of more than 370 million litres per day both by tackling water efficiency and also reducing leakage. Crucially of course one of the most important things for customers is the provision of reliably safe drinking water. Companies in England and Wales have a target of 100% compliance with drinking water quality. We've also had some really significant issues here in relation to affordability and 15 out of our 18 companies have already introduced social tariffs following our price review and more than 1 million people over the next five years will be receiving assistance more broadly than social tariffs with water bills. So there's a lot that I think has been delivered through 2014, that price review. But perhaps the most important thing that we've delivered through that review has been a step change in the culture of the sector. In particular through better information and better transparency, much better stakeholder involvement in the process and in the air comes, better customer engagement and crucially more flexibility for companies to deliver the outcomes that customers and society really care about in the most efficient way possible using the new TOTEX approach that we've introduced. And of course all this is underpinned by what I think is a much better sharing of Western rewards. And I'll expand a bit on some of those points later on. This is really, really crucial stuff because these sorts of principles, these sorts of changes are helping us to deliver what we really want to see in the water sector, which is trusting confidence in the provision of these vital public services. And of course that trust and confidence is only going to get harder to look up in the face of some of the key challenges that the sector faces. So I want to talk first about some of those challenges and about what they are. Now I'm really conscious that what I'm about to say is very much from a UK perspective, but I am expecting that a lot of the themes will resonate with others in the room. So let's just talk a little bit about some of those challenges. Perhaps most fundamentally, we are facing a significant increase in supply demand imbalance, both on the water and the wastewater side. There are significant pressures there. Perhaps most obviously from population growth in this country, we're looking at population growth of more than 10% in the next 20 years. And of course we're looking at that population growth being principally distributed precisely in those areas where we have least water, for example in London and the south and in the east. We're also looking at significant demographic change. So we've got a rising population, but we've also got an increase in the number of households which is rising at a greater rate than the population increase. So for example, in 2012 we had 22.3 million households. By 2037 we will have 27.5 million. And of course one of the things that that means is that we will have more buildings, we will have more development and of course that increases things like surface water run-offs that creates other pressures elsewhere, including physical pressures on the networks that we all regulate on networks that are already some of them quite old at all of which are aging. So we've got all of those challenges layered on top of which of course come the challenges of climate change. So if you look at the latest projections, for example in the UK we are looking at broadly speaking dry summers and wetter winters and we're certainly looking at more intense rainfall. And that's a very profound thing for us in the UK because our infrastructure is basically built for drizzle and we're getting much more in the way of toracial rains. There's a real challenge there. And beyond those physical challenges we also have pressure from rising customer expectations. And those expectations are not only about what the customer is getting but crucially about the whole relationship that they have with their service providers. Customers today increasingly expect more information, they expect more control and they want that where they want it and how they want it. And they are increasingly aware of the value of the data that their consumption creates and they want to share in that value. And of course in addition to all of this we've got rising expectations in terms of environmental standards, greater pressure to deliver environmental improvement. So that's continuing and of course greater pressure to make good use of environmental resources. And just that we're not enough, certainly for those sectors who rely on private finance I think we're now, I think it's fairly safe to say, approaching the end of two decades of rather benign financing time. We're certainly facing increasing pressures of interest rates and perhaps the sort of money that we've been used to being available for infrastructure investment over the past decade so it's not something that we can rely on going forward. And then of course we have continuing pressure in relation to affordability. These are services that people absolutely need for life and for health. They often do not have a choice of their provider and they don't have choices about whether they consume or not. So it's absolutely critical that they can afford the price that we are asking to pay for those services. Now I'm absolutely the first one to say that the sector in the UK is not in a bad place I think it's done a really good job. Certainly since privatisation has been delivering for customers for the environment and society more widely. But I think certainly in this country there's absolutely no doubt that the sector cannot simply carry on doing what it has been doing in the way that it has been doing it and expect to meet those challenges in a way that also delivers against the expectations of customers on service and affordability. And of course if it can't do that then what it's going to do is lose legitimacy in the eyes of those customers and society more broadly. So what does this mean for the sector? Well I alluded to it before. Our vision for the sector is one of trust and confidence in decoration of water and wastewater services, these vital public services. And that reflects the importance of these services to customer society in the environment. And it's really important to think through the implications of this. It sounds rather simple but the implications are quite profound. Perhaps in those areas the sector really needs to focus on delivering and understanding the outcomes that customers and society expect from it. What customers and society are going to get from the sector for the money that they put into it. They really need to focus as companies on understanding those outcomes and the delivery. They also need to focus on understanding the risks and opportunities in relation to those outcomes. And understanding where they as open service providers can best add value in managing those risks and opportunities. And of course the corollary of that is understanding where they are not best placed to add value. And perhaps where others adjacent to them in the sector that can play their part. And of course another thing that struck us when we started to think about what will drive trust and confidence in the provision of these vital public services is the importance of relationships in the sector. And perhaps the most critical relationship is that between the service providers and its customers. But relationships more broadly matter to you. Relationships across the whole sector with NGOs and governments of course with the regulator. And I think we really need to see a step up in companies taking responsibility for acknowledging the relationships that they hold and really building and maintaining those to better interests of customers. And that's partly importantly about recognising where water and waste water services sit within ecosystems so that the companies can work better with partners who have influence elsewhere in those ecosystems. And that's a very different skill set certainly here in the UK that those companies that need to grow and develop. So what does this mean for regulation? There are some really, really big challenges with the sector but how can regulation help? Well everything I was about to say certainly for us really built on the principles that we started to put in place for our 2014 price review. And perhaps the most important thing for us to remember is that we as regulators, we don't deliver water and waste water services. We don't actually provide these services that are so important to customers society and the economy. But we do have a really important role to play. And for me that role was around informing, enabling and incentivising the sector's response to the challenges that it faces. Now I'm conscious that the best way of doing that is inevitably going to vary from country to country. And what good regulation looks like has to reflect the circumstances of the sector and the economy and the society that we're operating in. And I'm sure we'll touch on that a little bit over the next couple of days. But let me just say a few words about how we at Offbox see our role in developing the sector in even Wales to get to where it needs to be. So if I can start off by just saying a few words about what we are not going to do. Crucially, we are not going to take ownership of responsibilities that rightly sit with the sector. As I said, we do not deliver those services that customers society care about. We are not best placed to take ownership of those issues. And we're also not going to tell the sector what it needs to deliver and monitor it and meet it up if it doesn't do that. And we're also not going to tell the sector what it needs to do to respond to these challenges, how the sector should structure itself. We're not regulating, for example, to a particular industry structure. But what we will be doing is we will be helping the sector and the others connected with it, remember those wider systems I spoke about to have good information for their decision making. I think information provision, information revelation is a really important part of our role. We're also going to enable responses to that information. And I personally, I think markets have a really important role to play. Now I'm not necessarily talking about competition. I'm not talking about any customer choices. I'm talking about markets as places where buyers and sellers and where transactions take place. Markets give you options. They enable you to make choices. They enable you to respond to that information that I talked about earlier on. And we're also going to incentivise efficient responses. And partly that's about doing things cheaper, it's about bringing costs down. But it's also crucially about making the best use and scarce resources. And it's also about doing things differently in new and better ways. It's about innovation. And our direction of travel really is summed up on this street pillar diagram here. What we're doing here is moving away from the approach that we took in the first couple of decades in privatisation, which incidentally I think was appropriate for that moment in time. Which was a very prescriptive, very interventionist, very one-size-fits-all approach that resulted in conversations with the companies that were very focused on doing what the regulator had asked them to do. Very administratively. We're going to take some steps away from that to what's something that is more framework-based, more principles-based, that enables us to be more targeted and more proportionate in our regulation to focus our efforts on where we will add most value. That crucially creates a more customer-focused approach, not regulator-focused, but customer-focused approach in the centre. And tools and approach that will make more and better use of market. And crucially also, this is going to be accompanied by a lot more emphasis from us on regulatory reporting, market intelligence, and assurance. So we're not just going to stand back as a regulator, we're not going to retreat. We are going to adopt a different approach, but we're also going to pay very, very close attention to what is happening in the market so we can understand where the markets are delivering for customers or society, and ultimately building and maintaining trust and confidence in these vital product services. So, why do we think that's the right approach for us here now? Well, it goes back to the essence of regulation, which I was talking about earlier on. It doesn't try to put the regulator in the position of taking responsibility for things that should rightfully sit with the sector. It doesn't put us at the position of second-guessing the water companies, or taking ownership of the things that they should be doing. It rather focuses our attention on the things where we can really have value by informing, by enabling, by incentivizing. We will be very, very clear about what the responsibilities on the companies are, and we will also be absolutely a sit-us in order for the companies to hold the companies to account for strategy-votes responsibilities. In a way that encourages precisely the sorts of challenging, innovative thinking we so badly need in the sector to meet those challenges that I have already at the start. Now, of course, we will continue to play a really important role in providing a safety net for customers. I think I said before, customers don't really have a choice as to whether they consume these services, and they don't have a choice of their supplier, so we will absolutely continue to make sure that they get a fair deal. But we will also really enable and encourage new and better ways of doing things. Rewarding innovation and with it, real fountainshift from which over time everybody can learn and benefit. And if we do that, then I think we as regulators can play a really crucial part in helping the sector to maintain and build the trust and confidence we all want to see in water and wastewater services. Thank you.