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The construction of the Thames Tideway Tunnel is “absolutely essential in keeping London moving and coping with population growth”, according to the Environment Agency’s national PR14 coordinator.
Talking at British Water’s annual winter meeting yesterday, Richard Hatch said: “How it is funded is very much down to Ofwat but ultimately we need to make sure that [the construction] happens.”
Critics have claimed that the tunnel could harm the environment, while others argue cheaper alternatives to the £2.8 billion project could be found.
Thames Water had a bid to increase bills to pay for the tunnel through the interim determination process rejected last year.
However, Match said this was not the “last bite” and there were “other opportunities” to fund the project.
According to Hatch, the 2014 price control review by regulator Ofwat was important for growth and would lead to the creation of a sustainable and secure industry, which would also benefit the environment.
In his speech to delegates from the water sector supply chain, Hatch laid out the Environment Agency’s expectations of water companies during AMP 6, the price control period that will run from 2015-2020.
“Securing a water supply both for the public and also the environment, and getting that balance right is probably a bigger part of the price review this time than it has been in the past,” he said.
According to Match, most companies are “standing up pretty well” to environmental challenges issued by the EA in August.
However, he said water companies still had a lot of work to do in reducing serious pollution incidents and tackling over-abstraction.
In addition, he said he wanted to see leakage levels reduced in AMP6.
Hatch also said greater collaboration around delivery was “vitally important”.
“We need to work in partnership with a lot of what is in companies’ business plans, be that with local landowners or local authorities.
Companies are already embracing this kind of approach and it should be a success in the next AMP period,” he added.
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