{"id":519194,"date":"2025-04-24T12:45:59","date_gmt":"2025-04-24T11:45:59","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=519194"},"modified":"2025-04-24T12:38:48","modified_gmt":"2025-04-24T11:38:48","slug":"ofwat-promises-bear-down-on-water-upgrade-costs","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/civils\/ofwat-promises-bear-down-on-water-upgrade-costs-24-04-2025\/","title":{"rendered":"Ofwat promises to bear down on water upgrade costs"},"content":{"rendered":"

Ofwat has said it will keep a \u201cmuch closer eye\u201d on the delivery of water infrastructure upgrades to ensure they provide value for money, as extra billions are pumped into improvements.<\/span><\/p>\n

The regulator\u2019s pledge came as campaigners challenged the skyrocketing costs of refurbishment projects, saying water firms were being allowed to \u201cgame the system\u201d.<\/span><\/p>\n

Windrush Against Sewage Pollution (WASP) said the increases had taken place against a backdrop of industry-wide apathy and a laissez-faire approach from the regulator.<\/span><\/p>\n

The campaign group cited the upgrade of a sewage works in Oxford, which saw costs spiral tenfold from the initial estimate four years ago.<\/span><\/p>\n

WASP said: \u201cIt wasn\u2019t just the epidemic of ridiculous and unbelievably high costs that inspired WASP to investigate water company pricing, it was also the casual approach the entire industry has to adding eye-watering increases that, in the Oxford case, started at an already alarming \u00a340m in 2021 and rocketed through \u00a3130m, \u00a3337m and now to \u00a3435m, without a credible explanation.\u201d<\/span><\/p>\n

The group compared the cost to that of infrastructure improvements in countries such as Denmark, where a state-of-the-art sewage works has been delivered for just \u00a329m, despite a generally higher cost of living.<\/span><\/p>\n

Ofwat\u2019s approach to regulation has distorted the way companies use their funding and report their spending, WASP argued.<\/span><\/p>\n

\u201cThe regulator\u2019s hands-off approach to auditing and detail has allowed companies to game the system,\u201d it said.<\/span><\/p>\n

At the end of last year, Ofwat approved spending of \u00a3104bn for infrastructure upgrades by water companies, with the investment to be released over the next five years.<\/span><\/p>\n

The package would include \u00a312bn for more than 2,800 projects to reduce spills from storm overflows, \u00a32bn to drive investment in nine new reservoirs and water transfer schemes, and \u00a3456m to replace 8,445km of water mains, it said.<\/span><\/p>\n

The announcement came six months after Ofwat said it would<\/span> cut water companies\u2019 plans to upgrade critical infrastructure<\/span><\/a> by \u00a316bn amid public scrutiny of firms\u2019 performance.<\/span><\/p>\n

Responding to WASP\u2019s claims, Ofwat said that although they will not be formally investigated, there will be greater scrutiny overall of how water upgrades are delivered in the wake of planned increases in investment.<\/span><\/p>\n

\u201cAs part of this price-review period, we\u2019ll be keeping a much closer eye on the delivery of upgrades and infrastructure projects because of the vast increase in investment,\u201d a spokesperson said.<\/span><\/p>\n

\u201cThat will include ensuring that they are value for money.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Ofwat has said it will keep a \u201cmuch closer eye\u201d on the delivery of water infrastructure upgrades to ensure they provide value for money, as extra billions are pumped into improvements. The regulator\u2019s pledge came as campaigners challenged the skyrocketing costs of refurbishment projects, saying water firms were being allowed to \u201cgame the system\u201d. Windrush …<\/p>\n","protected":false},"author":130832,"featured_media":295990,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[549,565],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n