Welsh Water, the only not-for-profit utility company in England and Wales, has revealed proposals for a new, £300 million state of the art water treatment works which will ensure customers in the town and surrounding areas continue to receive a first class water supply for decades to come.

Image Andy Dingley Wikimedia – the existing Water Treatment Works at Pontsticill
The plans follow a review by the company into the drinking water systems in the Brecon Beacons area which found that three water treatment works, Pontsticill, Cantref and Llwyn-on, are ageing and nearing the end of their operational life, making the works more challenging and costly to operate.
Welsh Water’s AMP7 Business Plan set out details of the proposed Merthyr Water treatment works (MTW) with an estimated cost of £300 million to replace the three existing works and associated raw and treated water pipelines with a single scheme with multi-stream capability as the most cost beneficial option when considered against alternative options, including site upgrades to the existing works.
The multi-stream capability at the site will allow more flexibility for maintenance outages and the additional 24 hour proposed clean water storage which increases storage in the area by 68% will significantly improve the resilience of the South East Wales Conjunctive Use System (SEWCUS) which serves Cardiff, Newport and a number of smaller valley towns.
The AMP7 Business Plan says the Merthyr Water treatment works is one of two schemes identified as likely to be suitable for Ofwat’s Direct Procurement for Customers(DPC) approach which involves a water or wastewater company competitively tendering for services in relation to the delivery of certain large infrastructure projects, resulting in the selection of a third-party competitively appointed provider (CAP).
At PR19 the water company business plans were expected to consider DPC for schemes above Ofwat’s suggested threshold of £100 million whole-life totex where this was likely to deliver the greatest value for customers.
Construction of the £300 million scheme, which will form part of the wider South East Wales Conjunctive Use System (SEWCUS) is planned to take 8 years, starting in 2022 with the scheme becoming operational in 2030.
Welsh Water said the new facility will not only provide new and improved water treatment processes to continue delivering a first-class supply, but will also provide additional water storage capacity to ensure a reliable supply that can cater for population growth and to be resilient to the effects of climate change.
The preferred site is on farmland at Gurnos Farm, just to the north of the existing A465 Heads of the Valleys Road, in Merthyr Tydfil.
Welsh Water is undertaking a comprehensive Environmental Impact Assessment to understand potential impacts on local communities and the environment resulting from the proposals, to identify ways these can be avoided or reduced.
Early findings have already refined the proposals, but further environmental surveys are being carried out to better understand the environmental context. Careful consideration is also being made to the external appearance of the buildings and structures to help minimise the landscape and visual impact.
Ian Christie, Managing Director of Water, Asset Planning and Capital Delivery at Welsh Water said:
“We’re pleased to reveal our plans for our new water treatment works in Merthyr Tydfil and to begin the process of gaining views from the local community. As a not-for-profit company owned on behalf of our customers, one of our top priorities is providing our customers with a first-class water supply direct to their taps and a key part of this is ensuring that our assets and network are resilient to major challenges like climate change which requires careful planning and considerable investment.”
“Our plans for the new works reflect this commitment and offer a resilient solution to the challenges we face now and in the future. In developing our plans, as well as taking on board the views of the community, we are keen to ensure we’re considering how the plans can benefit the local community such as providing jobs for local people, supporting training opportunities, providing education to schools and colleges and supporting our vulnerable customers.”
Welsh Water will release the latest information relating to the proposals on 28th February 2022 and will be seeking comment and feedback to be returned by 28th March 2022.
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