RAPID to open its doors to more projects and take a more flexible approach
RAPID is to introduce more flexibility into its framework so more water resource schemes can be advanced under its auspices in AMP8.
It said lessons learned to date and new evidence of supply needs in some regions meant it would welcome new solutions into the programme, albeit the focus will remain on strategically important schemes that can be operational in the 2030s.
The strict criteria applied at PR19 – on scheme size and multi-company involvement – has left some water resource options outside the RAPID programme, despite them facing similar technical and environmental issues as those in the programme. In PR24, RAPID said: “We will not limit ourselves to options that exclusively involve two or more water companies and ensure we consider all solutions that make a significant contribution to the water resources outcomes of their region”.
The PR24 Draft Determinations identified four new solutions which meet the new criteria: Broad Oak Reservoir, Teddington to Queen Mary Transfer, Kielder Transfer and Bacton Desalination. Others are under consideration, with decisions to be part of the Final Determinations: Nottinghamshire Mine Water treatment project, Rudyard reservoir augmentation project, West Midlands Raw Water Storage, Aylesford and Ford Reuse, and Carsington to Tittesworth Transfer. Those approved will be included in the RAPID programme from April 2025.
Among other changes RAPID plans for PR24 were:
Timings – standardised gate timings will be dropped. This means the accelerated track will also be dropped. All projects will follow a single process with flexible timings. Companies will also be allowed to take a portfolio approach to their projects as they progress through the gates.
Gate arrangements – Gate one and two will be for new solutions only. There will be a new approach for gate one, based on an informal submission with a progress review. RAPID will produce updated guidance for gate two, which submissions must align with. The first two gates must be funded through base allowances, with no enhancement allowance or delivery incentives – although there will be an option at gate two for water companies to request funding beyond base if required, alongside clear justification and evidence. Existing solutions will be working towards gate three and four in AMP8. The requirements for these carry over from PR19, including associated incentives, although penalties for submission delays will be removed in light of the new flexible timing approach.
Light touch oversight – RAPID plans to extend its oversight to solutions which may benefit from additional regulatory support to work through complex or risky issues, but outside of the gated process. So far, this relates to a number of water recycling schemes.
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