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NCE Live News Updates Wednesday 18 December: Thames Water alliance takes first step; Hinkley investigation starts

Thames Water’s AMP6 alliance has revealed how it is already working up plans to deliver billions of pounds of essential improvements to the utility’s ageing network from April 2015

Afternoon update: The European Commission has today launched the next stage of its investigation into the agreement for Hinkley Point C.

Scheme promoter EdF said that as part of a far-reaching reform of the UK energy market, it is right that the European Commission should examine the contract and highlight potential challenges.

EdF said it was looking forward to engaging fully with the Commission and interested parties during the course of the investigation.

It added that the investigation gives the government and others the opportunity to show that Electricity Market Reform in the UK is “essential to deliver the investment needed for the country’s low carbon energy future at a price that is fair for customers”. Without this reform, it warned, the investment will not take place.

EdF said in October that the agreement for Hinkley Point C would need state aid approval before a final investment decision can be taken.

The government has confirmed that Hinkley Point C is eligible for the UK Guarantees Scheme. The Guarantee will be charged at commercial rates in line with state aid rules.

 

First up today: Now operating under its name eight2O, Thames Water’s AMP6 alliance has revealed how creation of a strong united brand was a vital first step towards delivery of billions of pounds of

essential improvements to the utility’s ageing network from April 2015.

the collaborative approach marks a complete transformation in the way Britain’s biggest water and sewerage company delivers capital investment.

The eight-strong alliance comprises five groupings. These include two design and build JVs consisting of Costain, Veolia and Atkins (CVA) and Skanska, MWH and Balfour Beatty (SMB), as well as a programme manager in MWH and a technology innovator in IBM, plus Thames Water as both client and partner.

Eight2O chief operating officer Graham Keegan said creation of a shared identity was a key first step.

“Creating a shared identity was a much needed step forward in terms of enabling our alliance people to feel like part of a strong delivery team,” said Keegan. “It’s a fantastic milestone and we look forward to working together to achieve our goals.

“The working principles represent a big change from past delivery models and includes a joint team working with an integrated supply community, boosting safety and efficiency and making sure solutions delivered are innovative, sustainable, and present greater value for money in the future – not just the cheapest solution.”

Thames Water, the largest water and sewage company in the UK, is using the alliance model to achieve greater efficiency in the delivery of its business plan, with a greater emphasis on collaborative team-working, innovation, sustainability and an integrated supply community, in a bid to lock in long-term value to the company and its customers.

The alliance is set to carry out between £2bn and £3bn of work. Thames Water’s investment programme for the five years from 2015 will be finalised following the 2014 water industry review of prices by the regulator Ofwat. There is potential to extend contracts after this five-year period to 2025.

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