Water companies in England and Wales plan to invest £96 billion in infrastructure improvements between 2025 and 2030, their biggest investment in a five-year cycle.
The proposals presented today (October 2) include building 10 new reservoirs, reducing leaks by a quarter of 2020 levels and installing wastewater technology to remove more than a million tons of phosphorus from rivers.
The plan also commits £11 billion to reducing overflow spills, a plan described by trade association Water UK as “the most ambitious sewer upgrade since Victorian times”.
Water UK chief executive David Henderson said: “These record investment proposals will secure our water supply as we face a changing climate and a growing population.”
Regional water companies have submitted these proposals in their draft business plans to Ofwat, the water industry regulator, for its 2025-2030 price review.
According to Water UK, the plans are expected to create more than 30,000 jobs and 4,000 apprenticeships, representing a 50% increase in the water industry workforce.
Investment priorities vary by region. Yorkshire Water plans to invest £2.4 billion in replacing the electricity network and renovating storage and treatment facilities, while Wales Water aims to replace 7,500 customers’ lead pipes.
The water companies propose to finance the improvements through increases in consumer prices. Water bills would cost an extra £7 a month by 2025, rising progressively to £13 a month by 2030, if the plans are approved by Ofwat.
Ofwat said it will offer incentives to companies that keep their promises and penalize those that don’t.
UK water companies have come under intense scrutiny in recent years for failing to contain leaks and overflows.
Ofwat chief executive David Black said: “The water industry needs to make a big shift in investment and performance to clean up our rivers and seas, while helping to ensure we can rise to the challenge of climate change”.
Water companies will host consultations for customers and stakeholders during October and November. Ofwat will make its final decisions on the proposals in December 2024.
