If we can’t afford HS2, then can we afford to upgrade our water infrastructure, or can we afford not to?
This week UK water companies tabled very ambitious plans to invest £96bn in infrastructure in the next regulatory period that runs from 2025 to 2030, it’s known as AMP 8 – (Asset Management Plan). It is the deal that each company does with Ofwat and the government for the level of investment that it will make, the allowed costs for running their businesses, and what they are allowed to charge customers.
Ofwat have been widely criticised for not taking a strong enough stand against water companies and were accused of being “captured by vested interests”.
Earlier this year we heard that Thames Water were on the brink of collapse, which followed the news that their CEO was leaving. There have been numerous complaints about how UK water companies are structured.
This level of investment will have to be paid for by the Great British public – in the Thames region this would add £175 to average bills taking them to £611 per year.
A key question for the water companies is whether they can deliver this level of capital investment. For many companies this represents a step change in the levels of investment. The £96bn figure works out at £52m per day, my guess is that this would need a workforce of over 100,000 engineers.
If we believe that this investment if necessary, and it appears that it is, then we need to take people with us on the journey. Surfers against sewage said this week “So, they massively underinvest for years, destroy the environment, pay out huge dividends, and now want us to pay to clean up their mess”
