All strategic water resource schemes clear regulators' Gate One

Ofwat has given the green light for all 15 strategic water resource schemes proposed by collaborations of nine water companies to proceed through the standard "Gate One" of the assessment process being overseen by RAPID, the Regulators’ Alliance for Progressing Infrastructure Development.

Ofwat’s draft decisions, open for comment until 8 October, found all submissions to be good or satisfactory, and consequently no delivery incentive penalties will be applied.

All 15 proposals will now proceed to the next stage of development and scrutiny, subject to the following interventions from Ofwat.

“All options within solutions should continue except the Roadford pumped storage and transfer options of West Country South sources and West Country Southern transfer. Funding is reduced for this solution accordingly. We also propose that these two solutions are combined into one due to their interdependence on each other.

“The expenditure of all solutions at gate one, except the River Severn to River Thames transfer, has been assessed as appropriate and efficient and will be allowed. Insufficient evidence was provided in two areas of spend for this solution and a financial challenge of £831,000 has been made until further sufficient evidence is provided during the representation period.

“The United Utilities sources solution and the Vyrnwy Aqueduct solution will be combined to form a new single solution, as proposed by the solutions' sponsor.

“One new solution, Fens reservoir and Anglian to Cambridge transfer, proposed by Anglian Water and Cambridge Water, has applied to join the programme at gate one. This solution will join the programme and be funded for investigation to gate two.”

The next stage of scrutiny will be at gate two in October 2022. This will determine whether the schemes should continue to receive support.