At Price Review 19 (PR19) the regulator conditionally granted Thames Water £300 million to enhance the performance of its London water network. Thames Water has since met the agreed requirements and committed a significant shareholder investment of £400m that will benefit customers across the region through investment in water supply.
The £300m conditional allowance investment will now be pumped into future-proofing London’s pipework, helping to reduce leaks and protect our water supply.
In line with Ofwat's approval, Thames Water has agreed to three new performance commitments for the 2020-2025 price control period, supporting efficient and timely delivery of the schemes associated with this allowance. These include:
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• Reducing the number of leaks across London by 2030 – saving 27.8 megalitres per day and reducing the number of mains repairs by 208 times per year
• Delivering our Future London Strategy – including ambitious plans to reduce leakage by 50%
• Assessing pipework across the city to see if it's fit for the future
Nevil Muncaster, London Operations Director at Thames Water, said: "Fixing the basics is a key part of our ambitious turnaround plan. We’ve faced one of our most challenging years to date with the drought and extremely hot weather placing immense pressure on water pipes across our region, ultimately leading to an increase in leaks.
"The impact of climate change and increasing population size is evident, which is why we’re committed to upgrading London’s Victorian pipes, investing millions to ensure our infrastructure is fit for the 21st Century.
"We are always closely assessing our infrastructure and are pleased that Ofwat backed our business case to replace 112km of our leakiest water mains pipes across London. We believe in making every drop count and once complete this ambitious project with help us to save 27.8 megalitres of water every single day- that's equivalent to 11 Olympic sized swimming pools.”
"Our shareholders have also provided a substantial £400 million investment to ensure we can improve our operations and outcomes for customers, whilst increasing our resilience."
