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Other stories from last week
(by Karma Loveday) The High Court has granted River Action permission to proceed with a legal challenge against the Government over what the campaign group calls a failure to have or publish a special administration policy for water companies. The case will now proceed to a full hearing. River Action is pushing the Government to publish its policy, if it has one, or to produce and publish one if it does not. Yorkshire Water has appointed Dr Tony Ballance, chief strategy and
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Aug 233 min read
New planning framework seeks to smooth the path for water infrastructure
(by Karma Loveday) The Ministry of Housing, Communities and Local Government has published a new National Planning Policy Framework (NPPF), setting out its policies for plan-making and decision-making on development proposals in England and how these are expected to be applied. In terms of water infrastructure, the NPPF seeks to support development in ways which align with wider development and the clean power by 2030 policy. On plan-making, the Government said planning autho
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Aug 232 min read
Poole water recycling project cleared to progress to a planning application
(by Karma Loveday) The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) has approved the Poole Water Recycling and Transfer Project to clear Gate Three of its process and proceed towards a planning application. Poole will receive £17.9m of funding to work towards the new Major Water Infrastructure Programme’s combined 'Gate C' stage by late 2027. This will include detailed design, cost evidencing and environmental assessment work ahead of a planned Town
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Aug 231 min read
Retailers press for a price appeal mechanism
(by Karma Loveday) As arrangements for wholesale water price control appeals undergo reform, water retailers have argued that retail price controls also need an appeal mechanism. That was among the points raised by the UK Water Retailer Council (UKWRC) in its response to Ofwat’s Retail Exit Code (REC) review. The Council recognised creating an appeal mechanism for retail price caps is not in Ofwat’s gift, and that Defra has decided not to progress a legislative route for a re
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Aug 232 min read
Thames pays executive sign-on and retention fees
(by Verity Mitchell) Thames Water has used its emergency borrowing facility to pay a delayed £1m signing-on fee to chief financial officer Steve Buck. The payment was disclosed by Sir Adrian Montague, Thames Water's chairman, to the Environment, Food and Rural Affairs Committee. Additionally, Thames Water has reached reduced settlements (which are also extended over a longer period) on retention payments to 14 other executives, including two who have left the company. The £1m
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Aug 231 min read
Moody’s and S&P improve Southern Water outlook
(by Verity Mitchell) On 18 August, Moody’s Ratings announced that it had changed its credit outlook for Southern Water to positive, while on 20 August, S&P Global Ratings also announced it had revised its outlook from negative to stable. Fitch had already upgraded its rating last month. Now all three major rating agencies have formally recognised the improvements being made across the business: pledged equity support of £300m from Southern Water’s shareholders; improved finan
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Aug 231 min read
Ofwat may assess delivery capability as part of first report on AMP8 progress
(by Karma Loveday) Ofwat has finalised its PR24 Delivery Plan Assessment Framework, following May’s consultation. This will hold companies to account on their delivery against unprecedented levels of AMP8 investment, by tracking each company’s progress against its delivery plan. These cover key items of expenditure covered by Price Control Deliverables, including on storm overflow capacity, nutrient removal work, the smart meter rollout, mains replacement and supply interconn
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Aug 231 min read
Ofwat responds to contractor concerns about the major projects programme
(by Karma Loveday) Ofwat has set out a series of actions and commitments it will take to boost contractor confidence in the £50bn Major Water Infrastructure Programme, covering reservoirs, transfers and alternative water source supply schemes. The regulator pledged: Standardisation – through both recently published updated guidance on Direct Procurement for Customers and the Specified Infrastructure Projects Regulations, and standard form template Competitively Appointed Pr
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Aug 231 min read
The cautionary tale of the surge charging controversy
(by Karma Loveday) Water UK and Ofwat last week outright rejected media reports that water companies could ‘surge charge’ during drought – a practice where higher prices are applied in times of high demand, such as for mini-cab fares on New Year’s Eve or for remaining ticket prices for near-sold-out shows. The reports misunderstood key planks of water price regulation, including revenue neutrality and that charging schemes are set in advance. They also misinterpreted the inte
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Aug 231 min read
Wessex introduces a hosepipe ban, as rain does little to alleviate drought
(by Karma Loveday) Wessex Water has become the latest water company to impose a hosepipe ban – in its case, for the first time in 50 years (since the 1976 drought). It said it was also contacting larger business customers who are high water users to encourage them to avoid non-essential use. Affinity Water also last week extended the hosepipe ban active in its Central region to its Eastern region. This follows similar moves by many other companies following the driest July in
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Aug 232 min read
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