Water companies propose £1.6bn accelerated spending

Water companies in England have proposed accelerating projects worth £1.6 billion to address harm from storm overflows, improve water quality and enhance resilience.

Proposals include six mass smart metering schemes to help households understand and curb usage, identify customer-side leaks and manage demand across networks.

Ofwat published draft plans for consultation that outline works to begin during this asset management period (AMP7) and continue into AMP8.

The Department for environment, food and rural affairs (Defra) called on companies to submit proposals for schemes that would quickly improve water quality and reduce harm from combined sewer overflows (CSOs) last October. Defra is due to publish its Plan for Water tomorrow (4 April), which will set out integrated plans for cleaner more plentiful water resources for future generation.

“Substantial investment is needed to address the challenges to our water system of storm overflows, river and bathing water quality and drought resilience,” said David Black, Ofwat chief executive.

“We are pleased that we’ve been able to work with companies and identify significant investments which companies can start well before the next price control period. This will bring substantial benefits for customers and the environment and bring them faster. We want to see companies making more rapid progress in delivering improvements, and will hold them to account if they fall short.”

United Utilities has the largest potential programme of work at £914 million to improve rivers and reduce harm from overflows. The company exceeded the 2025 target to drive down discharges, however last week the Environment Agency’s event duration monitoring data showed UU had the highest number of spills in 2022 owing to the number of CSOs in its networks. It proposed £800 million of investment for three schemes that will cut more than 8,400 spills annually. Proposed work included accelerating 135 WINEP projects planned for 2025-30 as well as targeted action at Lake Windermere and adjacent to bathing waters.

Yorkshire Water has proposed investing £67 million to meet bathing water compliance standards at Ilkley Wharfe and coastal areas. The first inland site to become designated for bathing will see all CSOs within 5km discharge just once per season and to safeguard public health downstream of the sampling location.

Anglian Water will accelerate its rollout of 60,000 smart meters as well as targeted improvements for CSOs. It will potentially spend £27 million to reduce the risk of harm from 21 overflows and use digital technologies to better understand how networks and manage flows as well as nature-based schemes to reduce discharges from 148 CSOs. The company said digital optimisation should reduce spills by 188 per year, and more than 450 fewer spills from the combined approaches at the 21 targeted sites.

Northumbrian Water set out three potential schemes to improve resilience with an accelerated pipeline transfer scheme to move surplus water around its region ahead of new supply schemes being ready. The company also proposed a feasibility study for interventions to reduce spills from 42 overflows.

Southern Water will target CSO reductions in three areas with potential £50 million investment to cut 600 annual spills. The proposal includes pilots to manage surface water and seal private drains.

South West Water proposed investing £128 million to deliver more than 40,000 smart meters; add nutrient removal systems at five river catchments; reduce spills at 14 bathing sites; and offer leak repairs for householders.

Severn Trent outlined £95 million of investment to ensure ample water resources into the future. These include accelerating smart meter rollout with 250,000 devices to help customers use less water, identify leaks faster and manage demand. The company will increase reservoir capacity, and install more flow to full treatment monitors at wastewater sites to ensure compliance.

Affinity Water has proposed five projects worth £21 million including installing 20,000 smart meters and accelerating the installation of water treatments to ensure compliance for nitrates and other substances.

South Staffs and Cambridge Water plans to invest £99 million on smart metering with the rollout of 91,400 meters to domestic and business properties.

Portsmouth Water proposed investing £12 million this AMP7 and £120 million in AMP8 for universal smart metering. It will trial 500 smart meters prior to rolling out 43,300.

Bristol Water set out plans to potentially replace 1,000 supply pipes to stop leaks on households as well as replacing lead piping.

The consultation on draft plans will run to the 24 April and work will start from this year.