Water firms given go-ahead for £2.2bn of upgrades

Water companies will be allowed to spend another £2.2 billion upgrading their networks after projects were approved by regulator Ofwat.

The businesses – mainly United Utilities – will invest in 33 infrastructure schemes, with work starting in the next two years.

It is around £600 million more than Ofwat initially said it would allow the companies to spend after it emerged that United Utilities’ projects would cost a lot more than it had previously agreed to.

“The water sector needs to act now to secure future needs of customers and the environment,” said the watchdog.

“The schemes we are confirming today will help tackle storm overflows, install more smart meters, provide additional water supply and improve river water quality.

“In each case the company has demonstrated a clear need and benefits to customers and the environment.”

The lion’s share of the money – around £1.7 billion – will go to trying to tackle incidents where drains overflow when it rains.

The companies hope their efforts can reduce the number of spills by around 10,000 every year.

One of the investments will improve water quality at a swimming site on the River Wharfe at Ilkley, close to Bradford in West Yorkshire, and slash the number of spills into Lake Windermere.

Other projects include the installation of close to half a million smart meters, which can help companies manage usage better and detect leaks more quickly.

The approved schemes include a potential £1.5 billion for United Utilities, £128 million for South West Water, £99 million for Northumbrian Water, £94 million for Severn Trent, £81 million for Yorkshire Water, £80 million for Anglian Water, £70 million for South Staffs Water, £64 million for Portsmouth Water, £35 million for Southern Water, £21 million for Affinity Water, and £3 million for Bristol Water.