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Evening Standard
Evening Standard
World
Danny Halpin

Ofwat wants to kick-start 31 schemes worth £1.6bn to improve water infrastructure

Ofwat is consulting on proposals to accelerate £1.6 billion of water company investment in projects to improve infrastructure.

The water regulator wants to approve 31 schemes in England that will be brought forward from the latter part of the decade to begin in 2023 or 2024.

Seven water companies have proposed 10 schemes at a collective £1.1 billion to improve 250 storm overflows and reduce the frequency of sewage spills by around 10,000 a year.

Most of that investment – £800 million – will come from United Utilities, which aims to reduce 8,400 spills annually, including those into Lake Windermere.

These new schemes will help accelerate the delivery of the urgent improvements we need to protect our environment

Rebecca Pow, water minister

Around £400 million has been earmarked for improving the water supply’s resilience to drought, such as installing smart meters to reduce demand and Severn Trent increasing the capacity of the Draycote Reservoir in Warwickshire.

Anglian Water, South West Water and United Utilities have also proposed schemes to reduce nutrient pollution with £160 million, though these are dependent on the Levelling Up and Regeneration Bill receiving Royal Assent.

All work will start in the next two years, between 2023 and 2025.

Water minister Rebecca Pow said: “These new schemes will help accelerate the delivery of the urgent improvements we need to protect our environment.

“It includes £1.1 billion of new investment to stop sewage discharges at sites across the country and will deliver a reduction of 10,000 discharges per year in places like Lake Windermere, the River Wharfe, Falmouth and Sidmouth.

Substantial investment is needed to address the challenges to our water system of storm overflows, river and bathing water quality and drought resilience

David Black, Ofwat chief executive

“The investment set out here will also provide an important boost for regional jobs, businesses and local communities.

“It builds on the key commitments in our five-year strategy – our Environmental Improvement Plan – as well as our upcoming Plan for Water to tackle pollution, reduce water consumption and protect our waters.”

All English water companies except SES Water submitted proposals though not all met Ofwat’s assessment criteria, such as Thames Water, which failed to meet the criteria for any of its proposals.

Ofwat said it had identified a further 37 schemes totalling £1.5 billion that could progress in 2024 if companies can address its concerns.

It is running a consultation and said it will welcome any comments until midday on April 24.

The Department for Environment, Food and Rural Affairs said it had asked English water companies to accelerate investments between now and 2025.

A Plan for Water will be published on Tuesday, the department said, which will set out how it intends to achieve cleaner and more plentiful water for future generations.

Ofwat chief executive David Black said: “Substantial investment is needed to address the challenges to our water system of storm overflows, river and bathing water quality and drought resilience.

“We are pleased that we’ve been able to work with companies and identify significant investments which companies can start well before the next price control period.

“This will bring substantial benefits for customers and the environment and bring them faster. We want to see companies making more rapid progress in delivering improvements, and will hold them to account if they fall short.”

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