Water Cycle Study - East Devon District Council

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Ref EWCS April 2010 Exeter and East Devon Water Cycle Study 8 Water services infrastructure funding and planning 8.1.1 Any improvements to the water services infrastructure to meet growth or future consent standards needs to be programmed into a water company’s capital programme, which runs in five year Asset Management Plan (AMP) cycles. 8.1.2 The money that South West Water have available in each AMP period to spend on infrastructure is determined by OFWAT in consultation with government, the Environment Agency and consumer organisations. The consultation process is known as the Periodic Review. 8.1.3 We are currently approaching the end of the AMP4 period (2005-2010) and water companies are in the process of finalising the next Periodic Review (PR09), to determine the allowable capital expenditure for AMP5 (2010-2015). Figure 8.1 below illustrates the AMP planning cycle and Figure 8.2 illustrates the forthcoming AMP5 planning horizon (2010 to 2015) in greater detail. Figure 8.1 – Water company AMP funding cycles Figure 8.2 – Water company capital funding cycle for AMP5 (2010-2015) 90
Exeter and East Devon Water Cycle Study 8.1.4 This funding cycle and its associated constraints can have implications for the phasing of development, and it is important that water companies are involved in the planning process to ensure that infrastructure can be provided in time. 8.1.5 South West Water will begin planning for the period 2015/16 – 2019/20 next year in 2010 towards submitting a draft plan to OFWAT in 2013. Once funding has been obtained for new or upgraded infrastructure, there can be a significant lead-in time for planning and construction before the infrastructure can be used. Furthermore, there is limited scope for adjustment or reallocation of funding once allocated, therefore it can be difficult for the Water Company to accommodate requirements for significant infrastructure if not already included in the plan for that AMP period. 8.1.6 It is therefore important that planning authorities are aware of the submission dates for each AMP cycle and that they regularly provide South West Water with up-to-date information on the scale, timing and certainty of proposed development. For instance, South West Water will require detailed information on likely housing developments for 2016-2020 in advance of 2013 if they are to plan and provide the infrastructure required to meet those levels of growth. 8.1.7 In the context of the three AMP cycles between 2010 and 2026, South West Water are confident that they will be able to provide or requisition adequate infrastructure capacity within the normal planning timetable, provided that they are consulted during the site allocations DPD stage or at the outline planning application stage. 8.1.8 In response to this study consultation, South West Water have suggested the following approximate timescales as a guideline for the duration required for planning by the water company to deliver water services infrastructure to new development: • Major development (New community/settlement) � 2 AMP cycles • Significant development (1000 – 3000 dwellings) � 1 AMP cycle • Minor development (
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Water Cycle Study - East Devon District Council

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