Our response to Ofwat licence modifications for Thames Tideway Tunnel

We welcome the opportunity to provide input to  Ofwat’s proposed licence modifications to expend the separate price control for delivering the Thames Tideway Tunnel.

CCW’s comments on the proposed modifications

CCW agrees with the extension of the licence modification to allow Ofwat to set a separate price control for the period 2025 to 2030 for the work Thames Water carries out on the Thames Tideway Tunnel (TTT) project.

The separate price control ensures there is a clear boundary between Thames Water’s core business and the TTT, allowing for separate regulation and transparency for stakeholders of the two activities. The separate price control includes a bespoke interim determination mechanism and materiality threshold for the project to take into account the risks of the project during the construction phase.

We agree that the separate price control is in customers’ interests as it increases the level of transparency of TTT delivery and Thames’ accountability for the project. It can also help ensure costs are efficient as the TTT is subject to its own price determination and cost of capital.