Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Regulator kicks back 14 water companies' five year funding plans


Ofwat has told 14 water companies to revise their five year AMP7 business plans running between 2020 and 2025. 

Of the 17 water companies to submit plans, only three – Severn Trent, South West Water and United Utilities – received the green light by the water regulator. 

Four companies - Affinity Water, Hafren Dyfrdwy, Thames Water and Southern Water - were highlighted by Ofwat as “having the most work to do” in order to meet targets set out by the regulator.  

Their plans will need a “substantial rework” according to the assessment. 

Targets for the sector in the next funding period include a 15% leaks reduction, a 45% cut in emissions and an 80% reduction in pollution incidents.  

Ofwat chief executive Rachel Fletcher said the regulator was challenging companies to “deliver more for less” to their customers in the next five-year funding period. 

“We have challenged all water companies to deliver more for less for customers over the next five years,” she said. “We’re seeing an increased focus on the things closest to people’s hearts such as keeping bills affordable, cutting leakage, protecting the environment and helping those most in need.” 

Flecher added that the rest of the sector had to meet the same high standards as Severn Trent, South West Water and United Utilities.  

“Three companies have already stepped up to the mark with high quality plans and stretching commitments to customers for the next five years. The rest of the sector now needs to meet this high standard so that customers across the country get better and more efficient services”. 

Thames Water chief executive Steve Robertson said that the company was disappointed its business plan wasn’t one of those to win immediate approval. 

“Thames Water is disappointed with today’s announcement from Ofwat on our £11.7bn five-year business plan, which is built on the feedback of nearly 1M customers,” Robertson said. “We remain committed to our forward-looking plan, which prioritises investment over everything else - including shareholder dividends.” 

Ofwat will return its final determination of business plans in December this year. Companies categorised as needing “significant scrutiny” or “slow track” must submit revised plans by April. 

Like what you’ve read? To receive New Civil Engineer’s daily and weekly newsletters click here.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.

Related Jobs