Yesterday, Ofwat unveiled what it described as a “record” £88bn upgrade as part of the 2024 Price Review.
However, it came as a surprise to some as the figure is £16bn less than what water and wastewater companies proposed to invest when they submitted their plans to the regulator.
Speaking on behalf of its members, which include all water and wastewater companies in Scotland, England, Wales and Northern Ireland, a Water UK spokesperson said:
“This announcement is the biggest investment cut ever made by Ofwat. If it doesn’t put it right, Ofwat will be repeating the mistakes of the past. As a direct result, more homes will be blocked, our rivers will recover more slowly and we will not be able to cope with the water shortages we know are coming. Water companies proposed to invest £105 billion because it is the minimum needed to meet the legitimate concerns we have heard from the public about our environment and our economy.
“Ofwat is right to want to ensure customers receive value for money and that is why there are safeguards in place to ensure customers only pay for new, necessary and worthwhile projects. But for too long Ofwat has been unrealistic about the levels of investment needed and what it will take to provide and maintain the necessary infrastructure.
“We cannot allow this pattern to repeat itself. Water companies are prepared to invest in an unprecedented upgrade of the country’s water and sewerage infrastructure. Ofwat must now allow them to get on with it.”
