REG - Water Services Auth - Regulatory Approval

MicrosoftAnnouncement

03/04/2023 08:15

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RNS Number : 0512V  Water Services Regulation Authority  03 April 2023

For publication 7am, 3 April 2023

 

 

Ofwat sets out £1.6bn boost for water company investment

 

Ofwat is proposing to approve the accelerated delivery of 31 investment
schemes to deliver benefits for customers and the environment. The total
investment will be around £1.6bn with work beginning in the next two
financial years, from 2023 to 2025.

 

The investments will deliver benefits in three areas:

·     £1.1bn to improve over 250 storm overflows and reduce the annual
average of spills by 10,000. This includes work to improve water quality at
the bathing water site at Ilkley on the River Wharfe and significantly reduce
spills into Lake Windermere;

·     £400m for water resilience schemes including installation of
462,000 smart meters, and new water resource and water quality projects. In
total these projects will deliver and protect 159Ml/d of water supply, helping
to increase drought resilience; and

·     £160m to help reduce nutrient pollution and support nutrient
neutrality at 14 locations -protecting natural ecosystems while facilitating
housing and economic development.

 

In October 2022, Ofwat and Defra invited companies to propose schemes to
accelerate investment in water resilience (supply and demand); storm
overflows; and nutrient neutrality. Early approval of schemes will help the
sector to gear up for a larger investment programme over the coming years and
will help deliver benefits for customers and the environment sooner.

 

These are Ofwat's draft decisions for consultation. All projects must be
started prior to April 2025 and completed by 2030. Ofwat has also identified a
further 37 schemes, totalling £376m of investment in the 2023-25 period and
£1.5bn overall, that companies can accelerate if they are included in final
company environmental plans and address concerns that Ofwat has raised.

 

David Black, Chief Executive, Ofwat, 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".

 

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.

"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". 

 

Editors' notes

Information on the schemes and the assessment process
(file:///C%3A/Users/James.mccreadie/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/0MDT6YTU/Accelerated%20infrastructure%20delivery%20project%3A%20draft%20decisions%20-%20Ofwat)
 

 

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