Plans to cut sewage pollution in England hit by rising costs
Financial Times
23-05-17 12:20
Regulator Ofwat has increased demands for water companies in England and Wales to invest more into sewage infrastructure, following public pressure to reduce pollution levels in rivers, lakes, and seas. Despite paying out £1.4bn in dividends last year, water providers have been slow behind on spending targets with only three-fifths of the £2.2bn allocated to wastewater infrastructure for 2025 having actually been spent. The increased demand comes just as construction, finance, energy and labour costs are rising, which threatens the delivery of desired investment. Last month, Ofwat made the proposal to reapportion £1.6bn of expenditure planned for 2025 to 2030 to the next two financial years. More than £1bn of this is aimed at reducing the number of annual average spills from storm overflows, which was 301,091 recorded in 2022. The UK’s investment in water infrastructure is also reported to be lagging behind Europe.