Ring-fenced funding for 15 major projects has been approved by Ofwat through the Regulators Alliance for Progressing Infrastructure Development (RAPID).
The alliance has highlighted the need for changes to regulatory and commercial frameworks relating to multi-regional projects and launched a consultation to assess what issues may hinder progress.
RAPID comprises Ofwat, the Environment Agency (EA) and the Drinking Water Inspectorate (DWI).
The schemes being backed address mounting environmental and societal challenges that are forecast to create a water deficit of 3,500Ml/day by 2050. Large scale strategic supply solutions have been developed to prevent water shortages, protect the environment and meet wider societal needs.
Affinity, Anglian, Cambridge (South Staffs), Severn Trent, Southern, South West, Thames, United Utilities and Wessex have collaborated on the schemes to move resources from areas of surplus to water-stretched parts of the country. As specified in PR19, the nine companies will receive £500 million ring-fenced funding.
The solutions include capturing, recycling, and reusing water, using canals and rivers to move water around the country, building new reservoirs and investigating sharing water with farmers or industry.
Ofwat said it expected to see wider stakeholder engagement with ongoing dialogue as projects moved to gate two.
David Black, interim chief executive of Ofwat said: “Meeting the challenge demands collaboration and fresh thinking, and it’s exciting to see some of the green shoots from that including plans to use canals and rivers as nature’s conveyor belt to move water to where it is needed most.”
Nicholas Adjei, deputy chief inspector of DWI said: ” We recognise the importance of a rigorous process to scrutinise the development of these strategically important water resources projects. The projects will deliver improved long-term security of water supplies in light of the challenges presented by climate change and our changing demands for water.”
James Bevan, chief executive of the EA, said: “Climate change and population growth mean that if we don’t take action now, water demand will exceed availability in many parts of the country by 2050. Turning this around will require a society-wide effort and water companies, government, regulators, farmers and individuals all have roles to play.”
RAPID was formed to facilitate the development and funding of new large scale strategic water supply solutions. Each of the proposed schemes will pass through a gated process where decisions are made on delivery penalties and progression. The consultation on commercial and regulatory barriers will run to 26 January 2022.