Water companies operating in England and a portion of Wales have submitted their five-year business plans to the industry regulator, Ofwat. These plans outline their strategies for increasing bills and investing in infrastructure from 2025 onwards. The companies are seeking customer support in funding a record £96 billion investment to address issues such as raw sewage leaks, reservoir construction, and reducing leaks.
A significant portion of the investment will be allocated towards upgrading neglected infrastructure that has been disregarded since privatization. This comes despite shareholders receiving £66 billion in dividends and the accumulation of £54 billion in debt. Ofwat will now review the plans, and final decisions on their acceptance will be published in December 2024. Here are the proposals from the largest water companies and the potential bill increases from 2025 to 2030.
Southern Water
– Area covered: South-east England, including Hampshire, Kent, and the Isle of Wight
– Number of customers: 2.5 million
– Bill increase: £262, from £412 per year to £674 by 2030
– Planned investment: £7.8 billion, including upgrades to water supply works, leak reduction measures, and sewage collection and treatment improvements. The company also highlighted a potential need for an additional £27 billion investment over the next 25 years.
Thames Water
– Area covered: London and the Thames Valley
– Number of customers: 16 million
– Bill increase: £175, from £423 to £598 a year
– Planned investment: £18.7 billion, including service quality improvements, site upgrades, replacement of water mains and lead pipes, and reduction of sewage floods into properties. The company plans to secure additional funding of £2.5 billion from investors between 2025 and 2030, with £750 million already secured by 2025.
Severn Trent
– Area covered: From the Bristol Channel to the Humber, and mid-Wales to the East Midlands
– Number of households and businesses: 4.6 million
– Bill increase: £139, from £379 a year to £518
– Planned investment: £12.9 billion, targeting leak reduction, storm overflow sewage spill reduction, backup water tanker fleet enhancement, carbon emissions reduction, and water quality improvement.
United Utilities
– Area covered: North-west England
– Number of customers: 7.3 million
– Bill increase: £110, from £443 to £553
– Planned investment: £13.7 billion, including improvements to the Haweswater aqueduct project, reduction of storm overflows, assistance for vulnerable households, internal sewer flooding reduction, and infrastructure linked to the now expected-to-be-scrapped HS2 northern leg.
South West Water
– Area covered: South-west England
– Number of customers: 3.5 million
– Bill increase: £116, from £504 to £620 a year
– Planned investment: £2.8 billion, focusing on clean water provisions, wastewater treatment, reservoir connections, and the resurrection of plans for the Cheddar Two reservoir.
Yorkshire Water
– Area covered: Yorkshire, parts of Lincolnshire, and Derbyshire
– Number of customers: 5.5 million
– Bill increase: £111, from £442 to £533 a year
– Planned investment: £7.8 billion, featuring mains refurbishments and replacements, smart meter installations, environmental efforts, and addressal of internal sewer flooding and collapses.
Northumbrian Water
– Area covered: North-east England, Essex, and Suffolk
– Number of customers: 2.7 million
– Bill increase: Approximately £75 per year in the North-east, and around £35 per year in Essex and Suffolk
– Planned investment: £6 billion, including pollution reduction measures, drought resilience improvements, and investments in customer service. The company also intends to return over £90 million to shareholders if interest rates decline.
Wessex Water
– Area covered: Parts of Dorset, Somerset, Bristol, Wiltshire, Gloucestershire, and Hampshire
– Number of customers: 2.9 million
– Bill increase: £150, from £517 to £667 a year
– Planned investment: £3.5 billion, aiming to address nutrient pollution in waterways, improve storm overflow infrastructure, and tackle pollution and sewer flooding.
Anglian Water
– Area covered: East of England and Hartlepool
– Number of customers: 4.3 million
– Bill increase: £77, from £496 to £573 a year
– Planned investment: £4 billion, primarily allocated to environmental initiatives such as sustainable urban drainage schemes, the construction of two new reservoirs, and pollution and spill reduction.
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