TIDM49QW
RNS Number : 0507D
Northumbrian Water Finance PLC
14 February 2020
Northumbrian Water Finance Plc
PARENT COMPANY DECISION TO PURSUE CMA REFERRAL
Northumbrian Water Limited, the parent company of, and guarantor
of bonds issued by, Northumbrian Water Finance Plc, has today
released the following announcement:
Northumbrian Water Limited asks Ofwat to refer its PR19 Final
Determination to the Competition and Markets Authority
Northumbrian Water Limited (NWL) today (14 February 2020)
announced that it has asked Ofwat to refer its PR19 Final
Determination to the Competition and Markets Authority (CMA) for
review.
In developing its business plan for the PR19 price review, NWL
extensively consulted with almost half a million of its customers
in order to understand their priorities clearly.
Our customers' key priorities were efficient costs and assurance
that water and waste water services would be robust, deliverable
and resilient for the future. This customer feedback was then
directly embedded into NWL's business plan, resulting in
significant bill reductions and a focus on efficient and necessary
investment in the long term to help to mitigate the impact of
climate challenges such as flooding in the north east and drought
resilience in the south east.
Following detailed review of the PR19 Final Determination that
Ofwat set for NWL, the company firmly concluded that firstly it
falls well short of what customers clearly stated were their
priorities and secondly it would adversely impact the long term
financial resilience of the company.
The Board of NWL is unanimous in its conclusion to seek the only
redress it now has available in the regulatory process, being an
independent review by the CMA.
Commenting on the decision, Chief Executive Officer, Heidi
Mottram CBE said:
"NWL is a high performing and efficient company with a long
track record of delivering for our customers and protecting the
environment. We have listened carefully to our customers in the
development of our business plan. Our assessment of the PR19 Final
Determination is that it is contrary to the long term best
interests of our customers and doesn't provide for sustainable
investment going forward, to the detriment of all our stakeholders.
We have therefore asked Ofwat to refer the PR19 Final Determination
to the CMA for review."
Ends
Media enquiries:
Tom Burns, Brunswick, 020 7404 5959
Investor enquiries:Chris Johns, Finance Director - Email:
investorrelations@nwl.co.uk
NOTES TO EDITORS
About
NWL is a wholly-owned subsidiary of Northumbrian Water Group
Limited (NWGL), a company registered in England and Wales. NWL
trades in the north east of England as 'Northumbrian Water',
supplying water and waste water services to 2.7 million customers,
and in the south east of England as 'Essex & Suffolk Water'
(ESW) supplying water to 1.9 million customers.
Business Plan highlights
Almost half a million customers and over 500 different
organisations were engaged in co-creating NWL's business plan for
the 2019 price review. The draft plan submitted to Ofwat in
September 2018 received strong support from customers with 9 out of
10 (91%) customers accepting the plan. Based on customers'
priorities, the ambitious goals the company committed to in the
plan were to:
- eradicate water poverty in our operating areas by 2030
- be industry leading in the sustainable use of natural
resources, by achieving zero avoidable waste by 2025 and being
carbon neutral by 2027
- eradicate sewer flooding in the home from our assets and operations
- have the best rivers and beaches in the country
- have zero pollutions as a result of our assets and operations
- demonstrate leadership in catchment management to enhance
natural capital and deliver net gain for biodiversity
- have the lowest levels of leakage in the country in our water-stressed ESW operating area
- have a per capita consumption for water use of 118 litres per person per day by 2040
- give every single customer the opportunity to have a strong
voice and engage with us, with at least 2 million customers
participating by 2025
- deliver world class customer service
- promote confidence in our drinking water so that nine out of
ten of our customers choose tap water over bottled water
- be leading in innovation in the water sector and beyond
- spend at least 60p in every GBP1 with suppliers in our regions
- be the most socially responsible water company.
Company Performance
NWL has a long history of strong performance as a responsible
business. It has championed climate change issues via Business in
the Community and has been a runner up three times in their
prestigious Company of the Year. NWL has achieved the Queen's Award
for Sustainable Development in 2009 and 2014, and been featured in
the World's Most Ethical Companies list eight times in the past
nine years.
The company's leading approach to protecting the environment and
supporting local communities is supported by a strong operational
performance which saw the business as the only water company to
achieve a four star rating, the highest possible score, in the
Environment Agency's Environmental Performance Assessment in 2019.
The company has been awarded the accolade of Utility of the Year
three times (2009, 2014 and 2017) and Water Company of the Year in
2018 in recognition of its operational excellence.
NWL was also named as one of the Top 20 Best Companies to Work
For in The Sunday Times 2019 list, and also received the award for
the Best Company to Work For in the North East in The Journal
Business Awards in the same year.
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END
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