Ofwat is consulting on its proposal to set a separate price control for the upcoming AMP8 investment period 2025 – 2030 for the work Thames Water carries out on the Thames Tideway Tunnel project.
The Thames Tideway Tunnel (TTT) is the first, and to date only, large infrastructure project to be delivered under the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (SIPR). The regulations provide for a third-party infrastructure provider to deliver certain significant infrastructure on behalf of water or sewerage companies.
In 2015 Thames Water appointed Bazalgette Tunnel Limited (trading as Tideway) to deliver the project and Ofwat issued Tideway with a project licence.
Responsibility rests with Thames for enabling works, interface works, obtaining and disposing of certain land rights and accepting and operating elements of the tunnel once completed.
The TTT is now in its final stages of construction and is expected to be commissioned for testing in 2024.
Prior to the 2014 price review Thames Water’s conditions of appointment were modified to allow for a separate price control its activities on the TTT
At the time, Thames Water only agreed to a separate price control for the period 2015 – 2020, to be reviewed at the end of that period. Thames Water subsequently agreed to an extension of the separate price control for the period 2020 – 2025.
Thames Water's role in the project will increase between now and 2030 as the project is tested and brought into operation. In addition, surplus land will continue to be sold. When construction is complete and the TTT has been tested and accepted by Thames Water, Ofwat said the project will become 'business as usual' for Tideway and for Thames Water.
At the 2030 price review Tideway will then become subject to the normal price review process.
At that stage Ofwat expects that Thames Water's ongoing costs in relation to the project will become part of its Network Plus Wastewater Activities price control.
The extension will be made under section 12A of the Water Industry Act 1991 via modifications to condition B of Thames Water Utilities Ltd’s conditions of appointment, with the modifications coming into effect on 7 May 2024.
Closing date to submit comments on the proposed extension is Friday 8 March at 5:00pm. Comments should be sent via email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or posted to:
TTT Licensing
Ofwat
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