Thames Water not included in £180m sewage cleanup plan. It has an £8bn bill instead
It is understood the environment agency is disappointed that Thames Water did not make a fresh funding commitment, and was unable to accelerate investment.
More than £180m has been stumped up to clean up Britain’s sewage network, but the country’s biggest offender Thames Water is left off the list.
Water companies have ‘fast-tracked’ funding for the next year which is set to prevent around 8,000 sewage spills, which pollute English waterways.
The environment secretary made the announcement this morning. saying it would include investment in AI systems to manage stormclouds, new in-sewer monitors, as well as new recruitment.
This comes after the Secretary of State wrote to water and sewage companies last year, directing them to reduce sewage, by ramping up their commitments to deliver new funding.
It is understood the environment agency is disappointed that Thames Water did not make a fresh funding commitment, and was unable to accelerate investment.
According to Bloomberg, six English water firms included are Anglian Water Services, Severn Trent, Southern Water, South West Water, United Utilities Group and Wessex Water Services.
The funding commitment raised eyebrows, as it fails to include Thames Water, the biggest water company that services greater London.
Thames Water has come in for major criticism in recent years for its sewage spillages and water leaks.
In a bid to get a grip, it has built up a mammoth £18bn debt pile, amid swirling rumours the utilities behemoth will be wound down or nationalised.
When approached for comment, Thames Water outlined that it has spent – and is intending to invest – in a total of almost £8bn to clean up its act. A far cry from the £180m committed by the six other firms.
A breakdown of Thames’ spending spree
- Thames Tideway Tunnel, a £4.5bn: This project is almost complete, and it will remove 24 sewer overflows from the tidal Thames.
- £700million connection from Abbey Mills pumping station to our sewage treatment works at Beckton (the Lee Tunnel)
- Upgrade over 250 sewage treatment works, including a £100 million upgrade of Mogden sewage treatment works and £145 million on Beckton sewage works.
- By 2030, £370m in upgrading sewerage network
- Projecting to spend £0.9bn more than it is permitted to recover from its customers. Possibility of further £750m based on other conditions.
- The company received a £500m shareholder boost last year.
In total, these projects and spending commitments equal at least £7.965bn.
Thames Water declined to comment, but it is understood the firm is not ready to accelerate investment given its mounting debts and commitments to existing spending projects.
In February, Thames’ chair quit the firm, after it was dealt a fresh blow in January, with a major investor cutting the value of its stake by two-thirds.
Last week, a group of MPs urged the government to publish its contingency plans for bailing out Thames Water amid fears that taxpayers could be on the hook for billions of pounds.
At the end of February, Thames Water refused to be drawn on a bombshell report that it was lobbying both the government and regulator to avoid a bailout, with customers footing the bill.
Thames Water has defended its record, insisting it is transparent with customers, even publishing all of its sewage discharges online in a live map – which no other company does.
So, what next?
The fresh investment comes after £3.1bn was pumped into storm overflow improvements in 2020.
It will be put forward to accelerate improvements by April next year and support their bids to meet government discharge reduction plans.
The government says it is estimated to invest £60bn in the next 25 years, to clean up the industry.
This comes after a recent ban on bonuses for bosses who break the law, and Ofwat, the regulator, quadrupling its capacity to inspect leaks by the end of next year.
Environment Secretary Steve Barclay said: “The amount of sewage being spilled into our rivers is completely unacceptable and the public rightly expects action.”
This £180 million of accelerated investment, which will stop more than 8,000 sewage spills over the next year, is a welcome step forward as we continue to push for better performance from water companies and hold them to account.”
This money will mean more cutting-edge technology, including artificial intelligence, and more specialist staff to detect and reduce spills.”
Today’s announcement builds on significant work by this government to protect and strengthen our waters with increased investment, stronger regulation and tougher enforcement action.”
Water companies have been asked for comments about the impact of funding increases on bills.
DEFRA said it was being drawn from existing budgets – and will not impact customer bills.
Anglian Water said in a statement: “We recognise the need to go further, and work faster, to address public concerns on storm overflows. That’s why our shareholders have pledged an additional £50 million this year to fast-track this work across our region.
“The money will be spent on tackling the issue at the source, from boots on the ground, to creating more capacity in our network, storing excess water and treating it, and using natural solutions like wetlands to remove nutrients such as phosphates to protect rivers across our region.
“We are investing in the right solutions which will have the most benefit for the environment now and in the future.”
