A contact in the water industry tells us that Ofwat have advised the water industry that from 2024 they will change the funding mechanism for water companies. The change will be designed to encourage companies to look for more environmentally friendly solutions with wider catchment benefits, rather than encouraging the current behaviour of being rewarded financially for developing large infrastructure based projects like effluent recycling.
Could it be that Southern Water are keen to rush this very large infrastructure project through for maximum profit before the funding mechanism changes, or are we just being cynical! (the water industry runs in 5 year business planning cycles, the next cycle starts in 2024)
Good news for the future, but why delay 5 years? (Southern Water won’t need to develop any environmentally friendly solutions for 50 years or more once they get this one through the books)