Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what the annual additional cost to households will be of each of Yorkshire Water’s four Direct Procurement for Customers (DPC) schemes; and what the additional cost will be per household for each (a) DPC and (b) Specified Infrastructure Project (SIPR) scheme broken down by water company region.
Yorkshire Water has four direct procurement schemes as listed in the table below with the estimated whole life totex (total expenditure) for each scheme as detailed in Ofwat's PR24 Final Determinations: Major Projects Development and Delivery.
These schemes will be mainly delivered in conjunction with other water companies or organisations as shown in the table below.
Ofwat’s final determinations provide Yorkshire Water with a major project development allowance of £97.16 million to fund pre-construction development, commercial and procurement strategies, land acquisition and enabling works. The allowances will be reflected in the wholesale revenue limits set for the 2025- 30 period. Delivery of projects through DPC or SIPR competitive models means that for each project, the level of bill impact cannot be confirmed until final bids are received and evaluated, and Ofwat have approved that it is in customers' best interests to proceed with the project.
Company(s) | Project Name | Project Type | Delivery Model | Whole life totex (£m) | Construction start date |
Yorkshire Water / Northumbrian Water/UU | Kielder Transfer SRO | Transfer | In-House /DPC[1] | 1,146 | 2032 |
Severn Trent, Yorkshire Water and the Coal Authority | Nottinghamshire Mine Water Treatment | Water treatment/ Transfer | DPC | 755 | 2038 |
Yorkshire Water | West Yorkshire Water Treatment Works | Water Treatment works | DPC | 310 | 2029-30 |
Severn Trent/ Yorkshire | Source and Transfer | DPC | 419 | 2031 |
The full programme of all 30 major projects is listed in PR24 Final Determinations: Major Projects Development and Delivery but we will not know the bill impacts until companies have finished the procurement process and final bids are received and approved.