Several UK water companies on Monday outlined investment plans worth billions of pounds to tackle water quality, leakage, and pollution issues in the country as part of a submission to industry watchdog Ofwat.
Pennon Group, United Utilities, and Yorkshire Water have all put forward investment expenditure plans of £2.8 billion, £13.7 billion, and £7.8 billion, respectively. South West Water’s parent firm, Pennon Group, said it would invest the said amount over the next five-year regulatory period of 2025–2030 in order to improve the quality of water supplied to the public.
The investments are part of Ofwat’s price review programme, wherein water utilities set out their plans for the next five-year regulatory period to drive up performance and keep in line with environmental guidelines.
These plans are, however, subject to approval, and the England and Wales water regulator has until mid-2024 to review the proposals.
The performance of Britain’s water companies has come under fire, as customers and the government have condemned these firms for a record of piling up debt and permitting shareholders and executives to profit at the expense of the ecosystem.
The industry, which was privatised in 1989, has also come under intense scrutiny over sewage releases, which have dirtied rivers and beaches and shaken public confidence in the sector.
Ofwat’s annual performance report last week noted that only five out of 17 water companies under its watch achieved their targets on reducing pollution incidents, while half met their performance commitment on leakages in the 2022–2023 fiscal year.