Ofwat has confirmed its backing for nine water companies to progress with the investigation of innovative ideas and partnerships to help bring water to the drier parts of the country as part of a £500 million programme.

David Black, Interim Chief Executive at Ofwat commented:
“The need for maintaining reliable water supplies has never been clearer, with the ongoing challenges of population growth and climate change. 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. “
The schemes are:
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West Country South sources and transfers West Country North sources and transfers Southern Water desalination Thames Water to Southern Water transfer Havant Thicket to Southern raw water transfer Southern Water recycling South East strategic reservoir Anglian Water fenland reservoir London effluent reuse Thames to Affinity regional transfer
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Anglian Water to Affinity Water regional transfer South Lincolnshire reservoir 1 South Lincolnshire reservoir 2South Lincolnshire reservoir 3 Minworth/Grand Union Canal strategic transfer Minworth Severn Trent sources 1 Severn Trent sources 1 United Utilities Sources/Severn Thames Transfer/Vyrnwy Aqueduct/Minworth Anglian Water Fenland reservoir |
The solutions have been submitted to the Regulators’ Alliance for Progressing Infrastructure Development (RAPID) which consists of Ofwat, The Drinking Water Inspectorate (DWI) and the Environment Agency.
The Alliance was set up to help facilitate the development and funding of new large scale strategic water supply solutions to help prevent predicted water shortages.
Sir James Bevan, Chief Executive of the Environment Agency, 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.
“We need water companies to deliver innovative ideas for resilient water supplies. By passing today’s important milestone, they can continue to develop the strategic solutions needed to ensure this vital resource is protected for future generations.”
The following nine water companies have collaborated on investigating and developing solutions which will now receive ring-fenced funding for the next stage of their development.
- Anglian Water
- Affinity Water
- Cambridge Water (South Staffs Water)
- Severn Trent Water
- South West Water
- Southern Water
- Thames Water
- United Utilities
- Wessex Water
The wide-ranging solutions include ideas such as capturing, recycling, and reusing water, using canals and rivers to move water around the country, and building new reservoirs. Other projects include investigating sharing water with farmers or industry, or providing other benefits like reducing flood risk or making space for nature.
Following feedback from stakeholders, RAPID has offered its backing to further explore these solutions but is calling on companies to do more to engage with stakeholders.
Nicholas Adjei, Deputy Chief Inspector of Drinking Water Inspectorate (DWI) said the DWI recognised the importance of a rigorous process to scrutinise the development of the 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,” he added.
RAPID have also separately published a consultation asking for views on the regulatory and commercial issues affecting infrastructure development. RAPID recognises that changes are required to regulatory and commercial frameworks and the consultation covers this. Deadline to submit responses is 5pm Wednesday 26 January 2022.


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