Thames Water prepares to restart dormant desalination plant despite drought easing

CompaniesBusiness3 weeks ago

Thames Water is preparing to reactivate its desalination facility in Beckton, east London, later this year, although the plant will not be operational until winter. This timeline means the asset will come online long after the current severe drought conditions are expected to subside. The utility company stated that preparations are underway at the Thames Gateway water treatment works with the aim of bringing the plant online by the end of the year if necessary. The primary objective is to assist in replenishing reservoir supplies over the winter months to ensure adequate reserves for the following summer. Any final decision to utilise the desalination capability will depend on prevailing weather conditions, customer demand, and reservoir levels in the coming weeks.

The Beckton plant has operated only five times since it was fully opened in 2011, delivering approximately 7.2 billion litres of drinking water over a fifteen-year period. This output equates to roughly seven days’ worth of the capital’s daily demand. Initially installed at a cost of £270 million, the facility is now estimated to have a total cost of £500 million. It was designed to draw seawater from the Thames estuary during periods of water scarcity but has largely remained idle. Critics have long described the plant as a white elephant, noting that it provides a meagre return for the 16 million customers in London and the Thames valley who have funded it through their bills.

The restart comes amid heightened scrutiny of Thames Water’s performance during the ongoing drought, which has prompted hosepipe bans across much of the UK due to a fifth heatwave. Prime Minister Andy Burnham has expressed anger that water customers are not a bottomless source of funding, particularly after thirteen companies were permitted to raise bills for extra projects. Thames Water was among five firms allowed such increases. The company is currently under severe financial pressure, with creditors effectively controlling the business for two years while seeking government leeway on pollution fines before a formal takeover.

Thames Water chief executive Chris Weston has previously acknowledged significant issues with the Beckton facility. He told MPs that engineers were working hard to resolve problems, including treatment membranes that had reached the end of their lifespan last year. Replacement was delayed due to a lack of testing facilities for new units. Weston described the plant as a poor investment and questioned its original rationale. However, operating the plant during cooler winter months may offer greater financial viability. Abundant wind power and reduced strain on the electricity grid could lower energy costs, making the high electricity consumption of desalination more manageable.

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