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Capital expenditure split between water and wastewater

Over the next five years (2010-15) capital investment on water will be around (not yet certain these are Draft Determination figures) be £7.6 billion and on sewerage £12 billion. This continues the trend from AMP4 and AMP3 where majority of investment was on the sewerage service.

The continuing investment in the sewerage network is driven by compliance issues with EU Directives as well as national legislation and policy initiatives. For example upgrading unsatisfactory intermittent discharges or improving sewage treatment works and overflows to ensure compliance with the Bathing Waters Directive. National issues include First time sewerage (connecting properties to the sewerage network) and Discharge flow limit increases to enable increased volumes of sewage to be treated.

Gross capital investment by service area

Source: OFWAT report on financial performance of the water companies

Water distribution continues to be a significant area of investment with improvements to water treatment to address nitrate problems, cryptosporidium risk and pesticide removal. It also provides for action at the catchment level to address deteriorating raw water quality rather than pursuing traditional, capital-intensive treatment solutions.

Historic split in capital spend

Source: OFWAT report on financial performance of the water companies

 

 
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