Ofwat has published the forward work programme setting out the 2022-23 delivery priorities for the Regulators’ Alliance for Progressing Infrastructure Development (RAPID) - the partnership made up of Ofwat, the Environment Agency and the Drinking Water Inspectorate.

Image source: RAPID

The RAPID forward programme fits within Ofwat’s 2022-23 overall programme and contains more detail about how the three water regulators in England will deliver the RAPID milestones within that programme.

RAPID was set up in 2019 to facilitate cross-regulatory collaboration on the development of strategic water supply infrastructure projects. In 2020, Natural Resources Wales (NRW) joined the RAPID advisory group - NRW has a decision-making role for any solution involving Wales, Welsh policy and legislation.

There are currently 18 solutions in the £469 million ring-fenced programme established as part of the 2019 price review which are intended to be construction ready in 2025-30, except for those on the accelerated track which it was originally intended should be operational by the end of 2027.

Of the 17 strategic regional water resource solutions outlined in the PR19 final determinations, four have merged into two and one (Fawley desalination) has left the programme.

Four new solutions have joined the programme:

• direct transfer from Havant Thicket reservoir – which joined at accelerated gate one;
• Fens reservoir and transfer – which joined at standard gate one; and
• Mendips quarries and Upper Derwent Valley reservoir extension which are expected to join the standard track in May 2022.

Ofwat is encouraging further solutions to join during the programme - if the solutions in the programme progress to construction, the sector will be investing up to £14 billion in new infrastructure.

RAPID’s work during 2022-23 covers three key areas:

• Delivery of the gated process
• Implementing the Water Resources National Framework in England - which includes co-ordinating the collaborative work of the five regional water resources groups
• Developing the regulatory and commercial framework for water resource infrastructure

The paper says that in light of the expectation that a number of solutions will be construction ready early in the next price control period, the regulators have thought carefully about how they prioritise the work needed to support the water resource planning and price setting cycles. The RAPID regulators comment:

“We are asking the water sector to develop water resources in a new way recognising that the current regulatory and commercial arrangements may need to change to support this.”…….

“This includes considering whether the current cyclical approach to regulation remains appropriate for delivery of long-term customer and environmental outcomes or whether a longer-term approach would offer greater benefits.”

Two gates occur in the 2022-23 period – standard gate two and accelerated gate three submissions in November. RAPID says it will work with the partner regulators to assess the progress made in the timely development of each solution and to provide advice and recommendations to enable Ofwat to make decisions on continued ring-fenced funding for solution progression,

RAPID says it will continue working collaboratively with the regulators and the sector to shape the commercial frameworks for strategic resource solutions and to consider where there are “tensions and policy trade-offs between local impact and national need.”

During the year RAPID says it will continue to engage through an industry steering group which will support the development of sprint task and finish groups to explore barriers and opportunities, gain insight, and get buy-in to (its) policy proposals.

Where appropriate the regulators will seek sector leadership in resolving issues including pricing, incentives and risk; co-ordinated operations; multi-sector commercial models, the future of RAPID; standardisation; and security of supply.

The paper says RAPID also intends to develop and share next steps on the commercial and regulatory frameworks required for multi-party, multi-sector large-scale water resources infrastructure.

In addition, RAPID will be making policy recommendations to partner regulators and governments on issues such as charges, quality regulation barriers and the role of RAPID (if any) after 2025.

Click here to download RAPID forward programme 2022-23.