Thames Water accepts final determination
Thames Water today accepted the industry regulator's decision on the company's planned investment programme between 2010 and 2015 and the annual limits on customers' bills over that period.
Martin Baggs, Thames Water's interim Chief Executive, said:
"Ofwat has set us a particularly tough challenge but there have been some welcome changes from the draft determination and we will now get on and deliver the agreed plan.
"This is good news for our customers as it means we will remain entirely focussed on delivering the improvements and standards of performance they have a right to expect.
"Our operational performance is better than ever right now - best-ever water quality*, best-ever sewage works compliance and leakage targets hit for the third year running. Our absolute priority is to maintain these levels of performance for our customers over the next five years."
Ofwat's ruling means that the country's biggest water and sewerage company will be able to invest nearly £5bn on essential work to improve its ageing water pipes, sewers and other facilities over the next five years. Customers' bills will rise by a total of 3 per cent above inflation over the five-year period and they will still be under £1 a day by 2015.
Thames Water's programme of work for 2010 to 2015 includes:
- building the £600m Lee Tunnel, to take storm sewage away from the River Lee, a tributary of the Thames;
- improving treatment standards and capacity at all five major London sewage works;
- installing water meters at 370,000 properties;
- replacing worn-out Victorian water pipes under London so leakage doesn't get worse;
- protecting nearly 2,500 homes from the misery of sewer flooding, which is when effluent backs up in drains unable to cope with heavy flows.
* In the Drinking Water Inspectorate's last annual report, published in 2009 on results for 2008, Thames Water's compliance with tests was 99.99 per cent, its best-ever result.
