Proactive Investors - Thames Water is looking to relaunch its plans to build a £1.25 billion reservoir in Oxfordshire amid concerns about water supply for the capital and surrounding areas.
A new reservoir has not been built in the UK since the water companies were privatised more than thirty years ago.
Under Thames Water’s plans, the South East Strategic Reservoir Option near Abingdon would become the second-largest reservoir in the country, behind Kielder Water in Northumberland.
However, even if construction started in the near term it isn’t expected to be completed until the 2040s.
Plans to reignite the Abingdon project were started last Autumn, but Thames Water has since been embroiled in a financial crisis which requires new funding if it is to avoid collapse.
It means shareholders aren’t likely to pay too much attention to the plans until they are convinced the company has the stability to take on such a project.
Nevertheless, management believes the reservoir is required to help deal with the increasing population.
Thames Water’s catchment areas currently cover around 15 million people, but this is predicted to grow by around two million in the next 25 years.
It means an extra billion litres of water will be needed every day by 2050 for London and the Thames Valley, further justifying the importance of the 150 billion litre site.
“Our water resources are under threat and the consequences of not investing in a new reservoir could be to the detriment of millions of people, the environment and the economy, so it’s vital we take action,” said Leonie Dubois at Thames Water.