REG - Wessex Water Svcs. Wessex Water Svc.Fin - Appeal to CMA to enable sustainable investment

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18/02/2025 17:30

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RNS Number : 5743X  Wessex Water Services Limited  18 February 2025

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
(mailto: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.

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