Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
Thames Water shareholders are putting up £400 million to upgrade London’s ageing infrastructure.
That is on top of £300 million approved by Ofwat for upgrades during the last price review (PR19).
The total £700 million will be used to replace 112km of water distribution mains and seven large trunk mains across the city.
Nevil Muncaster, London operations director at Thames Water, said: “Fixing the basics is a key part of our ambitious turnaround plan. We’ve faced one of our most challenging years to date with the drought and extremely hot weather placing immense pressure on water pipes across our region, ultimately leading to an increase in leaks.
“The impact of climate change and increasing population size is evident, which is why we’re committed to upgrading London’s Victorian pipes, investing millions to ensure our infrastructure is fit for the 21st Century.
“We are always closely assessing our infrastructure and are pleased that Ofwat backed our business case to replace 112km of our leakiest water mains pipes across London.”
In its final determination for PR19, Ofwat stipulated that shareholders would be expected to put their hands in their pockets to contribute to the infrastructure investment.
In line with Ofwat’s approval, Thames has agreed to three new performance commitments for the 2020-2025 price control period, supporting efficient and timely delivery of the schemes associated with this allowance. These include:
- Reducing the number of leaks across London by 2030 – saving 27.8 megalitres per day and reducing the number of mains repairs by 208 times per year
- Delivering its Future London Strategy – including ambitious plans to reduce leakage by 50%
- Assessing pipework across the city to see if it’s fit for the future
Shirley Rodrigues, London deputy mayor for environment and energy, said: “It is right that Thames Water continues to invest in London’s water infrastructure, and this much-needed funding will help bring the ageing system into the 21st Century, tackle leaks and save water.
“However, whilst this investment is welcome, we are in a climate emergency and there is still more work to be done to give Londoners the water supply network they deserve.”
Please login or Register to leave a comment.