Image description: The overflow plughole on Ladybower reservoir in full flow. Peak District, England. Photo by Jonathan Bean on Unsplash

Why it matters

Ofwat has launched a consultation on new draft guidance for water companies delivering schemes under the Specified Infrastructure Projects Regulations 2013 (SIPR), the framework originally used to deliver the Thames Tideway Tunnel. In practice, this means setting clearer expectations for more projects to be delivered the Tideway way, by independently licensed third-party infrastructure providers, rather than by incumbent water companies. The push matters because the sector is preparing to deliver around 30 large-scale schemes, typically exceeding £200 million in total expenditure, over the 2025-30 regulatory period. Published in May 2026, the consultation sets out Ofwat’s proposed expectations for companies developing and procuring schemes that may be designated as Specified Infrastructure Projects.

How SIPR works and where it fits

SIPR allows certain major infrastructure schemes to be competitively tendered and delivered by independently licensed infrastructure providers rather than the incumbent water company. According to Ofwat, the framework was introduced to support delivery of large, complex projects where competition could improve value for money and transfer delivery risk away from customers. The Thames Tideway Tunnel, delivered by Bazalgette Tunnel Limited under a regulatory licence issued in 2015, has, to date, been the only project to use the SIPR route. In March 2026 Ofwat launched the Major Water Infrastructure Programme, combining previously separate gated processes into a single pathway and covering 30 large-scale projects identified at PR24, alongside four existing projects including Thames Tideway, United Utilities’ Haweswater Aqueduct Resilience Programme, Dŵr Cymru’s Cwm Taf treatment works and Portsmouth Water’s Havant Thicket reservoir.

What’s next

The Government’s recent White Paper on the water sector signalled that SIPR will be amended to allow a wider range of projects to qualify and to expand its scope to all types of water infrastructure, building on the perceived success of Thames Tideway. Ofwat is hosting a webinar at 2:15pm on 16 June 2026 for investors and supply chain participants on both the SIPR and DPC guidance.