Government streamlines dispute process for Thames Tideway Tunnel

The government will streamline the complaints process for specialised infrastructure projects (SIPs), such as the Thames Tideway Tunnel, cutting the cost of regulatory risk currently faced by projects.

The Department for Environment, Food, and Rural Affairs (Defra) said it will alter the licence conditions for infrastructure providers (IPs) of SIPs so they can to refer disputes with Ofwat to the Competition and Markets Authority (CMA), rather than a judicial review, which will “contribute to keeping project costs down by reducing the perceived project risks”.

The change in the licence conditions for the SIP regulations will bring them in line with those already available to water and sewerage companies, who are able to refer disputes surrounding any Ofwat determination, such as a price control decision, to the CMA.

In a consultation response, Defra stated: “Without this proposed amendment, the only avenue of appeal would be by application for judicial review, the costs of which could be passed on to customers.

“Additionally, CMA engagement in a dispute would provide customers with reassurance that their best interests are being taken into account in reaching a decision.”

The move is supported by Thames Water, which responded to the consultation by saying the changes will keep the costs of the Thames Tideway Tunnel “as low as possible” because IPs “will not price any additional risk of adverse regulatory determination” into their delivery costs.

The Consumer Council for Water’s (CCWater) chief executive Tony Smith said the licence change “represents a better way of dealing with disputes” and should help to keep the cost of the project down.

The CMA added it is “content with the proposed amendments”.

The licence changes will be laid before parliament and are expected to be introduced next year.