Ofwat has expanded the Approach to the RAPID programme and gated process for PR24, enabling more solutions to join.

Image source Ofwat

The regulator has published an update setting out changes to the Approach to the RAPID programme and gated process which was published in August 2024.

Ofwat’s previous PR19 final determinations identified and provided £469 million of development funding to accelerate the delivery of a programme of Strategic Resource Options (#SROs).

The PR24 final determinations are allowing up to £2.15 billion to be made available to continue the development of strategically important #infrastructure, including funding to develop 10 new solutions.

As part of this, RAPID identified a total of 28 SROs to be developed within the RAPID gated process for 2025-30. There are also a further five smaller resource options which will benefit from additional regulatory oversight and support from RAPID.

The August document set out new criteria which allowed for more flexibility in the assessment of solutions entering the RAPID gated process. Following the new criteria, Ofwat introduced four new solutions into the process that would be suitable to be delivered as part of the RAPID programme which were:

• Broad Oak Reservoir
• Lower Thames to West London Reservoir (LTWLR) (formerly Teddington to Queen Mary Transfer)
• Kielder Transfer SRO
• Bacton Desalination

Ofwat has now included a further six solutions in the RAPID gated process which are:

• Nottingham Mine Water SRO
• West Midlands Raw Water Storage
• North Suffolk Reservoir
• New Arlington Reservoir
• Rudyard Augmentation
• Mablethorpe Desalination

All new solutions which have been identified as suitable for PR24 will join the RAPID programme in April 2025.

The water sector regulator has also identified five smaller resource options that would benefit from RAPID regulatory oversight and support, whilst not necessarily being subject to the full requirements of the RAPID gated process, as follows:

• Aylesford and Ford Water Recycling
• Colchester Water Recycling
• Lowestoft Water Recycling
• Sandown Water Recycling
• Sittingbourne Water Recycling.

The new update also outlines key policy changes made to the RAPID gated process alongside Ofwat's final determinations, including:

• Further development of the approach to smaller resource options and ensuring alignment to the large scheme gated process
• Amendments to gate one and gate two expectations given changes to expenditure allowances in the final determinations
• Development of options to incentivise the delivery of in-house solutions.

The table below sets out a complete list of the solutions - split into solutions within the RAPID gated process and solutions not in the gated process but with RAPID oversight.

Ofwat has pointed out that solution owners were invited to provide feedback on the update document; however the regulator did not receive any comments on the proposed approach.

According to the update, oversight of the development schemes through a RAPID gated process, supported by the Environment Agency's National Appraisal Unit, has provided momentum across the programme of strategic resource options (SROs) as they work towards securing the necessary consents and permits that will be needed before construction of the solutions can begin.

“We have learnt lessons from the process so far and recognise the importance of continuing to collaborate and work through addressing regulatory, commercial and environmental gaps and barriers which have been identified since Price Review 2019,” the update says.

Ofwat’s PR19 final determinations identified and provided £469 million of development funding to accelerate the delivery of a programme of SROs.

The PR24 final determinations are allowing up to £2.15 billion to be made available to continue the development of strategically important infrastructure, including funding to develop 10 new solutions.

Click here to download Approach to the RAPID programme for PR24 in full