Wessex Water Services Limited release: Appeal to CMA to enable
sustainable investment
· Proposed financial allowances
not sufficient to meet customers' expectations and deliver
obligations.
· Bill increases to remain
below national average with broadened support for vulnerable
customers.
· Business plan will promote
economic growth and boost local economy.
Wessex Water (Wessex Water Services
Limited) has asked the Competition and Markets Authority (CMA) to
review how much the company can invest in vital water and sewerage
improvements over the next five years.
The regulator Ofwat announced its
final determination on Wessex Water's 2025-30 business plan in
December. It allowed for £4.2 billion of total expenditure - 17%
short of what the company's own calculations have shown are
required to meet its obligations and customers' expectations, and
support growth in the region.
The ambitious plans reflect the
findings of consultations with customers and include reducing the
use of storm overflows, better management of rainwater, preventing
pollution, and securing resilient water supplies for the
future.
Wessex Water proposed to almost
double its investment programme over the next five-year period,
with more than a quarter of the investment being used to remove
nutrients from treated wastewater discharges so housebuilding and
growth can continue in the Wessex Water region, while protecting
the water environment.
The company's Chief Executive, Ruth
Jefferson, said: "We've spent a lot of time listening to customers'
concerns and thoughts about how we can help the environment,
protect rivers and beaches and make sure there is enough water in
the pipes for generations to come.
"We agree that there are improvements
to be made, which means upgrading and building new infrastructure
as well as harnessing nature to safeguard water quality. We don't
believe Ofwat's final determination will allow us to deliver what
either our customers have asked of us, or our wider
obligations."
The increase in annual charges for
Wessex Water customers as a result of Ofwat's Final Determination
was one of the lowest in the industry, and would still be below the
national average even with potential additions from the CMA appeal.
Independent of the appeal to the CMA, the company is working to
increase take-up of the support it offers to customers struggling
to pay their water bill.
"We were the first company to
introduce a social tariff for water, offering discounts of up to
90% for those least able to pay, and we believe nobody should spend
more than 5% of their disposable household income on their water
bill," Ruth Jefferson said.
"For those who are struggling, we
have a range of help available including flexible payment plans,
payment breaks, debt support and more."
Ruth Jefferson concluded: "Secure,
resilient water infrastructure is one of the cornerstones of the
economic growth that is at the heart of Government strategy. We
have a proven track record on customer service and are prepared to
deliver this step-up in investment, including using nature-based
and catchment solutions which offer better value for money for all
our stakeholders.
"We have a strong case to put to the
CMA for the additional allowances we need to continue delivering a
water and sewerage system fit for the future."
ENDS
Wessex Water's plans for 2025-30
include:
· £820
million to be invested in improving river and coastal water quality
by upgrading treatment sites and removing 1,550 tonnes of nutrients
from waterways.
· £580m
to reduce the operation of storm overflows, introducing more
nature-based solutions and promoting better rainwater management.
This is more than double the £3m a month currently
spent.
· £54m
to progress two new reservoirs in Cheddar and the Mendips in
partnership with Bristol Water and South West Water.
· £35m
to roll out smart water meters.
· £70m
to reduce leakage and help customers use less water.
· £63m
on increased real-time river water quality monitoring, harnessing
AI and working with partners to better understand sources of
pollution.
· Supporting local economy, growth and skills through the
creation of many new job opportunities.
Notes to
editors:
· For
all enquiries please email press.office@wessexwater.co.uk
· The
average bill increase for customers in England and Wales over the
2025-30 period as a result of Ofwat's final determinations is 36%.
Wessex Water's proposals, if fully accepted by the CMA, would
result in a 29% increase by 2030, meaning that, in real terms,
customer bills would still be lower than in 2009-10.
· If
customers are struggling to pay, there is a lot of different
support available at wessexwater.co.uk
· Wessex
Water serves a largely rural area, with a more extensive network of
pipelines and treatment works than most companies, increasing its
maintenance and delivery costs.
· Wessex
Water is engaging with local stakeholders to increase understanding
of better rainwater management - returning rain to the environment
close to where it falls to avoid it entering the sewerage network
and causing storm overflows to automatically operate.
· Wessex
Water has pressed Government and regulators for greater use of
nature-based treatment solutions such as wetlands and floating reed
beds, which would minimise bill increases, support biodiversity,
and improve water quality.
· Executive bonuses and salaries are set by an independent
remuneration committee and assessed against a range of different
metrics. They are paid by shareholders, not customers.
