New Civil Engineer – On-line Brief – 3rd December 2023
Water companies outline £96bn infrastructure plans for next five-year investment period
03 OCT, 2023 BY GREG PITCHER
Water companies have set out plans to almost double their spending on the network during asset management period (AMP) 8, 2025 to 2030.
The utilities filed their business plans to regulator Ofwat on Monday 2 October, asking for permission to hike customer bills to allow them to invest a combined £96bn in 2025-30.
If approved, these proposals will see a raft of infrastructure projects carried out in AMP8 to improve the reliability of clean water supplies and reduce sewage spills into rivers and seas.
Sector body Water UK said utilities had asked for approval to build 10 reservoirs as well to use cutting-edge technology and nature-based solutions to slash waste water overflows.
Thames Water outlined plans to replace 500km of water mains, install 1M smart meters and commission the long-awaited Tideway Tunnel.
Anglian Water pledged to start planning for two new reservoirs, create an area of wetlands the size of 100 football pitches and renew 695km of vulnerable pipes.
Yorkshire Water said it would refurbish five reservoirs following condition surveys, as well as carrying out projects at poorly performing water pumping stations and replacing 746km of mains.
Dwr Cymru (Welsh Water) promised to replace 174km of asbestos cement pipes and continue with its programme to improve the safety of 29 dams. It will invest £3.5bn during AMP8.
Severn Trent said it would invest £12.9bn in AMP8. Plans include making biodiversity improvements at 26 sites, replacing 30ha of hard surfaces with sustainable drainage and installing 1,000 water-quality sensors in rivers.
South West Water will invest £2.8bn to upgrade a third of water treatment works in Devon and Cornwall, reduce leakage to less than 10%, create a water grid to ensure all strategic reservoirs are connected and invest in large reservoirs starting with Cheddar 2 in Bristol.
United Utilities' £13.7bn plans include upgrading over 900km of water mains, reducing storm overflows by more than 60% by 2030 and strengthening the network.
Affinity Water will spend £2.1bn on actions including reducing leakage and river restoration.
Essential investment
Water UK chief executive David Henderson said: “These record-breaking investment proposals will secure our water supply as we deal with a changing climate and a growing population.
“While increasing bills is never welcome, this investment in our country’s infrastructure is essential to ensure the security of our water supply. Water companies are seeking regulatory approval to reduce overflow spills into rivers and seas as fast as possible and to double the number of households receiving support to pay their bills.
“Ofwat now needs to back these plans that are both ambitious and vital so that we can provide the highest quality drinking water for a growing population, ensure the security of our water supply in the future and reduce the use of storm overflows as much as possible.”
What the water companies say
Yorkshire Water chief executive Nicolas Shaw said: “This submission marks our largest ever environmental investment and illustrates our commitment to deliver what our customers expect. The programme will protect and improve the quality of water in rivers and at coasts, leading to cleaner, safer water environments that support recreation and biodiversity across the region."
Welsh Water chief executive Peter Perry said: “This is the most ambitious business plan we have ever developed, and as a not-for-shareholder company, our customers’ interests and priorities are the foundation of our plan and everything we do. While it presents a significant challenge we are confident that it is both deliverable and financeable and will help to improve our performance significantly over the coming years."
Thames Water interim chief executives Cathryn Ross and Alastair Cochran said: “Our ambitious plan delivers what our customers have told us are their top priorities. We plan £18.7bn total expenditure, including a record £4.7bn investment in our network and other assets, to maintain safe high quality drinking water, to ensure security of water supplies across London and the Thames Valley now and in the future, and to deliver further environmental improvements.”
Severn Trent chief executive Liv Garfield said: "We’ve listened hard to our customers; not only will we make sure we keep building on our strong track record, but we’ll be more than a water company. This investment will make sure we have a positive economic, environmental and social impact for decades to come for the communities we serve."
An Anglian Water spokesperson said: “We have worked closely with customers to build this plan, which will create over 7,000 new jobs and deliver £4bn of environmental projects, £1bn of which will be addressing storm overflows, plus £476m to support new housing developments. By 2030 average bills will rise by just 21p a day and financial support will be in place for all customers at risk of water poverty.”
Ofwat will publish a draft determination for each company by June next year. These will be consulted on before final determinations are set in late 2024.
David Black, chief executive at the regulator, said: “The water industry needs to deliver a step change in investment and performance to clean up our rivers and seas, while also helping to ensure that we can meet the challenge of climate change.
“Company business plans are an important first step in the price review process. Ofwat’s role is to forensically scrutinise their proposals, to ensure any increase in bills is justified, efficient and delivers significant improvements in river and bathing water quality. We will assess how companies are helping customers to afford any bill increase.
“As we work through the business plans we will continue to monitor companies’ performance, hold them to account for delivering improvements and push them to build meaningful plans to change."
It emerged last week that more than £1.7bn of cash set aside to enhance water infrastructure went unspent over the past three years.
END
No comments:
Post a Comment