Letter: Can GBC Afford to Pay Thames Water £90 Million?

Published on: 19 Sep, 2018
Updated on: 19 Sep, 2018

An image of how the proposed SARP could be laid out.

From Bob McShee

Independent borough councillor for Worplesdon.

I was concerned to learn that Guildford Borough Council is to pay all the costs of moving the sewage works at Slyfield.

When the Slyfield Area Regeneration Project (SARP) forum used to meet, Thames Water who own the sewage works attended the meetings and there was much discussion about sharing the cost of the sewage works move between GBC and Thames Water.

Thames Water, reported to have paid £1.16bn in dividends between 2006 and 2015, and subject of the Financial Times article: Thames Water: the murky structure of a utility company, will need to upgrade the sewage works to meet increased demand due to the planned housing development in the Local Plan.

The cost of the move would be approximately £90 million and I question if the GBC can afford this sum at the same time as investing £81 million for the University of Surrey’s student accommodation.

Responses to Letter: Can GBC Afford to Pay Thames Water £90 Million?

Jim Allen Reply

September 19, 2018 at 2:09 pm

I would ask the simple question – are they permitted in law to make such a payment, and will this payment be ‘reimbursed’ by Thames Water PLC by way of the water rates being paid to GBC as opposed to Thames Water PLC? Who would under normal circumstances pay for their own equipment and be re-reimbursed via the water rates?

I still question the reality of moving forward with a project which is not commercially viable – the cost falling to the electorate.

I note, Thames Water has not budgeted for any works in Guildford Borough until at least 2025 and has a sewer headroom of only 362 new homes in total when over 672 are expected to be built each year for the next 15 years.
Robert Hyatt Reply

September 19, 2018 at 6:05 pm

I think they probably can if they end up unlocking a valuable development site and selling it off.