UK Regulator Provisions $4.6B for Water Companies Infrastructure Upgrades
Ofwat’s Provisional Funding Approval for Water Utilities
Aug 13 (Reuters) - British water regulator Ofwat on Thursday provisionally approved funding of up to £3.4 billion ($4.59 billion) for 13 water utilities, clearing projects aimed at upgrading infrastructure and supporting new housing and data centre development.
Purpose and Impact of the Funding
"The newly agreed funding will help unlock much-needed new housing development and boost business growth across a range of sectors, as well as improving drinking water quality and the removal of PFAS and forever chemicals," Ofwat Executive Director for delivery Helen Campbell said in a statement.
Key Details of the Funding Allocation
Here are some details:
- Five of the 13 companies have been allowed to recover funding through increases in customer bills between 2027 and 2030, including Thames Water, Severn Trent, Southern Water, and Wessex Water.
- Of the total funding, £477 million will be used to address rising demand linked to housebuilding and data centre development.
- United Utilities, which plans to invest in water infrastructure for data centres in east Manchester, received approval for £995 million, compared with the £1.11 billion it had requested.
- The regulator is due to announce its final decision on funding in December.
- Ofwat, the regulator for the water industry in England and Wales, said the funding would give companies access to money for priority projects, including data centres, ahead of the next regulatory cycle review in 2029.
Exchange Rate and Reporting
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(Reporting by Prerna Bedi in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)
