Ofwat designates United Utilities’ Haweswater programme for competitive tender

Ofwat has formally designated United Utilities’ Haweswater Aqueduct Resilience Programme as a project to be delivered via Direct Procurement for Customers (DPC), under section 195A of the Water Industry Act 1991.

The company will have to competitively tender the project for delivery by a Competitively Appointed Provider after Haweswater met the PR19 DPC criteria on size (£100m whole-life totex), discreteness and value for money. Ofwat said on the latter that United Utilities’ value for money assessment showed the DPC route could provide potential benefits to customers compared to in house delivery.

The programme will involve the replacement of six tunnel sections of the existing Haweswater Aqueduct, connections to existing multiline siphons between the tunnel sections and associated facilities, and ongoing maintenance of those works for a period of approximately 25 years after completion.

In February 2021, United Utilities was among five water companies who agreed to licence modifications to give effect to the DPC model.