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 [email protected]

·      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.