Put consumers’ willingness to pay at centre of Thames Tideway decision, urges consumer champion
Posted: Thursday 15th March 2007
Local and national representatives of water consumers have called on the Government to put consumers’ willingness to pay at the centre of decisions about the scale of a huge new project aimed at cleaning up the tidal Thames.
Thames Water consumers will soon have a clearer idea of the Government’s preferred option and costs for solving the problem of combined stormwater and sewage overflows in the Thames Tideway. A Defra decision is expected this spring on the scale of the work required, using assessments provided by Thames Water.
The two proposals under contention are a 32km long tunnel along the length of the tidal Thames, and an alternative project which uses two shorter tunnels in west and east London: they are designed to intercept sewage discharges to the river and transport the rainwater/sewage for treatment at Beckton. Either scheme would represent the largest single water industry project since privatisation in 1989, with costs of around £2bn. Members of the Consumer Council for Water in the Thames region have shadowed the project, identifying potential impacts on consumers. They are concerned that Defra’s decision should reflect consumers’ willingness to pay for improvements.
David Bland, Chair of Consumer Council for Water Thames, said: “Decision-makers should not deluge Thames Water consumers with extra costs unless there is a very powerful case.”
He added: “We have been asking Ministers to see the very limited range of Tideway options in the context of all the region’s needs and seek a joined up strategy for all its water problems, including water supply. There are also ongoing projects as part of Thames Water’s current investment programme, the effects of which might remove the need for such a large and expensive tunnel.
“Meanwhile, there has been consultation on the very limited options but not on costs. Public reaction can only be weighed when consumers have fair information on charges.
“Whatever decision Defra takes, we are also very concerned at the potential for exceptionally high and rising costs of solutions to the problem in terms of equipment and labour – especially given the number of large-scale projects going on in London at the same time, including Crossrail and regeneration projects at the Olympics site. Decision-makers should not stretch consumers’ willingness to pay beyond its natural limits.”
Playing a hand in the Government’s decision will be legal considerations about whether the Thames Tideway project will meet the requirements of the European directive on urban waste water treatment.
Dame Yve Buckland, Chair of the Consumer Council for Water, said: “The Thames Tideway has national significance. The Government’s decision must be right for consumers and for the water environment: it should not be driven by fear of European Commission proceedings.”
