London Councils agrees a deal with Thames Water

London Councils has brokered a £10 million deal with Thames Water to ensure council residents across London can access water in their homes.

Thames Water has agreed to pay the costs of installing booster pumps in both council-owned and private high-rise buildings.  The company will cover all the initial costs of the work, and the building owner will then pay back 50 per cent of the costs to the company after five years, interest free.

New booster pumps are needed in over 500 council buildings in London because of lowered water pressure across London resulting from Thames Water's Network Improvement Programme (NIP). The NIP was introduced by Thames Water to better regulate water pressure in certain areas of London. Thames Water hopes that this will reduce the number of supply disruptions due to leakages caused by high water pressure impacting on old Victorian pipes. 

The lower supply pressure resulting from the NIP in certain areas means that many existing booster pumps in council-owned residential blocks will not receive the level of pressure required to function, leaving residents without reliable water supplies. It is estimated that 540 council buildings (and many more private buildings) in London will need more efficient pumps fitted to cope with the reduced pressure.

Since 2004, London Councils has been negotiating with Thames Water to encourage them to meet the costs of this exercise. Thames Water's offer outlines that:

• Thames Water will agree the cost of fitting a booster pump with the building owner (either the council or a private owner) and then carry out the work to design and install it in the building;
  
  
• the council/building owner will then pay back 50 per cent of the cost of the booster pumps after five years, free of interest;
  
  
• once installed the booster pumps will become the property and responsibility of the building owner;
  
  
• if, during the implementation of the NIP, extra buildings are identified as needing a new booster pump because of the reduction in pressure, pumps will be installed as per the arrangements outlined above. 
  

London Councils' Leaders' Committee - made up of the leaders of London's 33 local authorities - approved the offer at its meeting today (Tuesday, 14 November).

Speaking after the meeting, London Councils' chairman Councillor Merrick Cockell said:

"We are pleased that Thames Water has accepted our argument that they should make a significant contribution to fitting these buildings with booster pumps. It will save London's local authorities hundreds of thousands of pounds which can now be used to improve tenants' homes and will ensure that the residents of the affected buildings will have access to water.

"As a result of London Councils' lobbying, Thames Water has agreed to extend the terms of its offer beyond council buildings to cover the costs being incurred by the private sector.  This is a huge win for Londoners achieved by London Councils."

ENDS

Notes to editors:

1. Leaders' Committee approved the offer on Tuesday, 14 November.

For press enquiries please contact: Chris Hogwood on 020 7934 9757 christopher.hogwood@londoncouncils.gov.uk  Fax 020 7934 9769

For non-media enquiries contact: London Councils, 59½ Southwark Street, London SE1 0AL  Tel 020 7934 9999 www.londoncouncils.gov.uk