Ofwat has set out what it describes as a ‘record breaking’ £88 billion upgrade as part of the 2024 Price Review.
However, it comes as a surprise to some, as the figure is £16 billion less than water and wastewater companies has proposed to invest when submitting their plans to the regulator.
Speaking on behalf of their members, which includes all of the water and wastewater companies across Scotland, England, Wales and Northern Ireland, a Water UK spokesperson said:
“This announcement is the biggest ever cut in investment by Ofwat. If it doesn’t put this right Ofwat will be repeating the mistakes of the past. As a direct result, more housing will be blocked, the recovery of our rivers will be slower and we will fail to deal 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’ve 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 protections are in place to ensure customers only pay for projects that are new, necessary and value for money. But for far too long, Ofwat has failed to be realistic about the levels of investment needed and what it will take to deliver and maintain necessary infrastructure.
“We cannot allow this pattern to repeat itself. Water companies are ready to invest in an unprecedented overhaul of the country’s water and sewage infrastructure. Ofwat now needs to let them get on with it.”
