Ofwat has agreed to reduce the scope of the use of the Direct Procurement for Customers (DPC) mechanism in Anglian Water’s Elsham Transfer and Treatment scheme.
At PR19, the regulator said all elements of the scheme should be delivered via DPC. Because of a risk of late delivery and the subsequent impact on the environment and customers, it has now allowed Anglian to deliver the transfer pipe and conditioning plant components in-house, while the treatment works will continue via DPC.
For procedural reasons (to enable Anglian to bring an interim determination requesting an allowance in its price limits for the elements that will now be delivered in house), Ofwat has designated the whole scheme and then modified the designation.
Ofwat expects to publish the draft determination on the Anglian’s interim determination application at the end of June, and the final determination at the end of July.
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