NEWS Industry warning over sewer transfer Water UK has warned the


Government that the regulations on the transfer of private sewers will not be approved in time to allow them to make the necessary preparations


for a successful


transfer. The utilities’ representative body has written to the Secretary of State pointing out that if the regulations on the transfer of private sewers are not presented by the end of May, it will not be possible for companies to meet the 1 October deadline for the transfer. Water UK says that the continuing uncertainty about whether or not these regulations will be approved in time are already causing companies considerable difficulties.


the first of October, the regulations to enable that haven’t even been distributed for consultation.” He described a “war room” at company headquarters in Reading, plastered with


diagrams and


plans, mapping the anticipated 40,000km addition to the 60,000km network. Decisions are still needed on who will undertake contracts to maintain the new infrastructure. He expressed concern that private sewer transfer was “a big issue” for Thames Water customers and for the utility’s investors.


Thames


Water chief executive, Martin Baggs, has warned that water company reputations could be put at risk by private sewer transfer.


“One of the things I’m really concerned about is the reputation of our business overnight if we


have to adopt a failing system,” he revealed. According to Baggs, (see full


interview, Page 14), another challenge is tendering. “We could


be dealing with


another 200,000 blockages a year,” he said. “We’re running a tender process to engage the market,


AMP5 TRACKER


Flood appraisal undertaken for Thames


Thames Water Utilities has appointed engineering consultancy Black & Veatch to appraise flooding resilience at a number of its key water treatment assets within London and the Thames Valley. The work is part of a £4.9B programme to help protect infrastructure and maintain water security for the utility’s 8.7M customers.


May Gurney wins £43M in contracts In a trading update, May Gurney announced that it has won new AMP5 utilities framework contracts, with a combined value of up to £43M, with clients Anglian Water (AW) and South West Water (SWW).


The AW Programme Partner


Civil and MEICA contracts began in March and covers the whole of the utility’s region. The company says it has also expanded its existing relationship with South West Water to be the sole contractor for developer services, mains laying and water rehabilitation. The contract period of four years is valued at up to £23M, with a possible extension of a further six years.


Welsh Water tenders hydro services


Dwr Cymru Welsh Water is inviting tenders for hydro- electric generation services. Expressions of interest for inclusion on the list of applicants to be invited to tender for these framework agreements should be submitted by 5 May.


8 Water & Wastewater Treatment April 2011


but it’s very difficult for us. It’s like tendering for a contract when you don’t actually know the size of the contract you’re tendering for.” He highlighted the risk to jobs among the smaller contractors: “You’ve got some really good companies out there, doing a really good job,” Baggs said, but added that the trend would be towards larger contracting arrangements, with flexibility built in.


Baggs said it made sense to join up the responsibility for the network, he identified unanswered questions surrounding the switch. Alongside asset management and maintenance, areas of the business such as customer service and IT would also be impacted but, not knowing the condition or scale of the asset base, Baggs said it was difficult to determine the staff and other resources required.


He warned: “The frightening thing is that the transfer date is


“These costs aren’t built into our funding at the moment,” said Baggs, “and they’re not built into customer bills. Now the regulator wants us to demonstrate those costs as actual costs before we put any applications in to recover those costs.


He warned that customer bills would be hit at the end of AMP5 to cover expenditure of previous years: “So you’ll see a big increase in the last year, then you’ll see a drop off to customer bills in the following year. To me that cannot be the right thing for customers.”


Baggs added: “Even if the regulator took our lower estimates, at least that would give us some idea of the direction we’re taking on this. This will cost us millions of pounds this year, just to prepare for it, even before we implement it.” Speaking at an All Party Parliamentary Water Group meeting on 29 March, Ofwat chief executive Regina Finn said that robust information would be required by companies wishing to discuss an interim determination.


Minister proposes changes to NI Water Northern Ireland Minister


for


Regional Development, Conor Murphy, is proposing changes to the way water and sewerage services are managed in Northern Ireland.


Speaking at the Water NI 2011 conference on sustainability in Belfast (see page 38), the Minister said he would be providing a paper to the Northern Ireland Executive,


“so that an incoming Executive will have a look at the whole way NIW [Northern Ireland Water] is set up”. Also speaking at the conference, hosted by WWT on 16 March, were Shane Lynch, chief executive of the NI Utility Regulator and NIW chief executive Trevor Haslett. A DVD of Water NI 2011 is being produced, to register interest, please email nicola.smith@fav-house.com.


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