Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
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utILItY WeeK | 13th - 19th June 2014 | 5 Thames Water will pay £86 million to cus- tomers after regulator Ofwat found the company had misreported the number of properties at high risk of sewer flooding. The payout is more than six times the amount the company said in April it had set aside to deal with a possible fine. In addition, the long-term package would offer a "better deal" for consumers than a one-off payment, an Ofwat spokesman said. The regulator found that between 2005 and 2010 Thames Water reported more properties as being at a risk of sewer flooding than could be supported with evidence, resulting in an "inefficient spending of customers' money". The £86 million package will include a £79 million reduction of Thames Water's regulatory capital value, which Ofwat says will benefit customers for years to come. In addition, the company will put £2 million into a fund to help customers unable to pay their bills and £5 million towards community projects that aim to protect the natural environment. Ofwat said it accepted the offer, adding that there was no evidence of deliberate misreporting. "We are satisfied Thames has put right the problems that caused the misreporting. It's only fair that when companies make mistakes, they put it right," said Ofwat chief executive Cathryn Ross. Water Peel Energy and United Utilities will be giving details of their proposed expansion of the Scout Moor Windfarm with local communities at a series of public consultation events beginning on Monday 23 June, the companies said this week. Eleven towns and villages in the Rossendale, Rochdale and Bury areas are affected. Peel Energy's Jon England said: "Environmental and technical studies continue to suggest that open areas to the north of the site, and within the existing turbines, could accommodate turbines without impacting people living in the surrounding areas. The suitability of the site is partly due to its proven high wind resource and ability to connect the turbines to the national grid." Thames to pay £86m to customers £250m the amount considered by the treasury to underwrite up to £10 billion-worth of project finance for the Hinkley Point C nuclear plant £9.5m the value of a new marine energy test facility inaugurated at the university of edinburgh this week "Not surprising from Centrica given the uncertainty surrounding shale gas reserves" Analysts at RBC Capital commented on reports that Centrica will not bid for further shale licences this summer "This onshore wind project will be the largest in England and Wales and will send a clear signal about this government's commitment to the industry" Energy secretary Ed Davey last week welcomed news that Vattenfall has awarded two contracts for a £400 million windfarm in south Wales to British firms "The solution is complex; we have our role to play but our wastewater assets are only 30% of the problem" Head of sustainability Chris Matthews this week appealed to farmers, local authorities, developers and landowners to help reduce pollution in water courses