Ofwat has approved £104 billion of investment by water companies in England and Wales over the next five years. The level of the final determinations is close to the £105 billion the industry initially requested, and far more than the £88 billion Ofwat proposed in its draft determination.
Photo credit: Alaur Rahman
Key elements of the investment package, which also reflect the UK and Welsh Governments’ stated priorities for the sector, include:
- £12bn on 2,884 projects reducing spills from storm overflows;
- £6 billion of upgrades to combat nutrient pollution for around 1,000 sites and catchments;
- £3.3bn on nature-based solutions and increasing biodiversity;
- £2bn of development funding to unlock £50bn investment for 30 major projects designed to secure water supplies including nine new reservoirs and nine large-scale water transfer schemes;
- £456m of extra funding on day-to-day allowances to increase the rate at which water mains are replaced, with 8,445km set to be improved over the next five years.
What the 2024 price review means for water customers – Ofwat