Thames Water has received approval from industry regulator Ofwat to proceed with its ambitious ambitions to overhaul London’s network of Victorian water pipes.
Price Review 19 (PR19) gave the firm conditionally £300 million to improve the performance of its London water network.
Thames Water has since met the agreed-upon requirements and committed a substantial shareholder investment of £400 million, which will benefit customers throughout the region through water supply investment.
The £300 million conditional allowance investment will now be directed toward future-proofing London’s piping, assisting in the reduction of leaks and the protection of our water supply.
Thames Water has agreed to three new performance obligations for the 2020-2025 price control term, in accordance with Ofwat approval, to assist efficient and timely implementation of the works linked with this allowance.
These are some examples:
Reducing the amount of leaks in London by 2030, saving 27.8 million litres per day and reducing the number of mains repairs by 208 times per year.
Delivering our Future London Strategy, which includes ambitious ambitions to cut leakage by half.
Pipework throughout the city is being evaluated to see if it is fit for the future.
“Fixing the basics is a key part of our ambitious turnaround plan,” said Nevil Muncaster, London Operations Director at Thames Water. We’ve had one of our most difficult years to date, with the drought and excessive heat putting enormous strain on water pipelines throughout our region, ultimately leading to an increase in leaks.
“The impact of climate change and rising population size is clear, which is why we’re committed to upgrading London’s Victorian pipes and investing millions to ensure our infrastructure is fit for the twenty-first century.”
“We are constantly evaluating our infrastructure, and we are pleased that Ofwat supported our business case to replace 112 kilometers of our leakiest water mains pipes across London.
” We believe in making every drop count, and once completed, this ambitious project will save us 27.8 megalitres of water every day–the equivalent of 11 Olympic-sized swimming pools.”
“Our shareholders have also contributed a significant £400 million investment to ensure that we can improve our operations and customer outcomes while increasing our resilience.”
The Greater London Authority (GLA) has praised the investment in the Capital’s water system.
“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 twenty-first century, tackle leaks, and save water,” said Shirley Rodrigues, London’s Deputy Mayor for Environment and Energy.
While this investment is excellent, we are in a climate emergency, and more work needs to be done to provide Londoners with the water supply network they deserve.”
Source: Thames Water
