The regulator has made the changes to the licence to create a “clear boundary” between Thames Water’s activities in the project and the Infrastructure Provider (IP), but also between Thames Water’s activities in the project and the rest of its activities.
The move was said to be necessary because of the “scale of the activities for the TTT and the different risk profile for the TTT compares to the rest of Thames Water’s activities”.
The separate price control will run up until the next price review, where it will be reviewed by the regulator as to whether it should be extended beyond 2020.
Ofwat will publish the separate price control for Thames Water’s TTT activities tomorrow (Friday 12 December) in its final determinations for 2015-2020.
The regulator said the changes to Thames Water’s licence, which were proposed in October, are necessary because of the “size and complexity” of the £4.2 billion project.
The Consumer Council for Water (CCWater) stated it recognised the potential benefits of having a separate price control for Thames Water’s TTT activities.
A separate price control will also be issued for the IP, which the UK government specified should deliver the 25km tideway tunnel.