Costs and Benefits of HARP
The renewal of the Haweswater Aqueduct is a major investment in water infrastructure for the North West region, safeguarding drinking water supplies to 2.5 million people in communities across Cumbria, Lancashire and Greater Manchester.
The programme will ensure we have the right infrastructure to provide a resilient water supply to communities right across the North West for decades to come and, at the same time, bring a range of economic benefits to the region. Around 1200 people will be employed at the construction peak with an apprentice recruitment programme to help build and secure skills for the future.
The estimated cost of delivering the programme is around £3 billion. To meet this cost, we specified in our 2025 indicative statement of significant changes that charges would increase by approximately 2.5% in 2026/27 to reflect a contribution towards the costs of HARP.
We expect a further 2.5% increase in 2027/28 and then level charges in respect of HARP to 2030 (the end of our current 5-year business plan period).
This amounts to an increase of around £15 in the average household bill in 2026/27 and a similar increase in 2027/28. These anticipated bill increases are already included in Ofwat's price control determination to March 2030 and are incorporated into the expected price increases for AMP8 as previously published by Ofwat (see page 21).
The extent of future impacts on bills beyond March 2030 will depend upon the timing of the completion of tunnel sections and the actual costs incurred at the time. Completion is expected by 2035, and the current baseline costs indicate that the impact on bills by that time will be in the range of £55 to £75 for the average household bill. Note that all bill impacts are approximate and stated in 2024/2025 prices (i.e. before inflation).