Date
of disclosure: 18
February 2025
Anglian
Water Services Limited (“Anglian Water”), the parent company of
Anglian Water Services Financing Plc, has today released the
following announcement:
Anglian
Water
Decision
by Board requesting Ofwat to refer its PR24 Final
Determination
to
the Competition and Markets Authority (CMA)
Anglian
Water’s Board has asked Ofwat to refer its PR24 Final Determination
to the Competition and Markets Authority (CMA).
Announcing
the decision, Chief Executive Mark
Thurston said: “Throughout the PR24 Price Review, we have
sought to deliver a plan that addresses the current and future
needs of our region. The Government has made clear its priority to
drive growth to stimulate the economy and has already highlighted
the critical role water plays in this.
“In the
East of England, with four of the
fastest growing cities in the UK, as well as the Cambridge-Oxford
Arc, the levels of investment needed are significant. As a long
term, purpose-driven business we are planning sustained investment
over decades to build resilience against a changing climate,
deliver essential investment in water and sewerage infrastructure,
and protect and enhance the environment – all of which will create
jobs and bolster the local economy, helping our region to
thrive.
“This
resulted in our largest ever business plan, worth £11billion, with
one of the lowest corresponding bills increases (29% in real terms
over the five years to 2030) and largest packages of customer
support. It was created in collaboration with our customers and
other stakeholders, who recognised the need for greater investment
in this five-year period, but also the decades
following.
“In the
present Final Determination, the overall risks are not balanced,
such as the underfunding for asset maintenance, which puts
long-term investment and resilience at risk.
“Ofwat’s
stated aims for this settlement were to align the interests of
companies and investors to those of customers, by setting the
appropriate balance of risk and return. Unfortunately, after
extremely careful consideration, the Anglian Water Board has
concluded that Ofwat’s Final Determination falls short of its own
stated aims, and having
already
factored in nearly £1billion of efficiency savings, it means that
additional pressures in the regulatory settlement are
unacceptable.
“We do not
take this decision lightly and having given serious consideration
to our customers and to all of our other stakeholders we have
concluded we must make use of the next step in the regulatory
process and ask the CMA to reconsider whether the right balance has
been struck.”
Anglian
Water’s PR24 Business Plan was one of the largest infrastructure
proposals in the sector, totaling £11.2bn. Planned investments
include:
·
Doubling
investment in the environment to over £4bn.
·
Developing
plans for two new reservoirs in Lincolnshire and the Fens to supply nearly
three quarters of a million people and future proof against water
scarcity.
·
Investing
£365m in the first strategic interconnector of its kind, ensuring a
new level of resilience against future drought.
·
Renewing
1,000km of water mains, maintaining
a reliable service for customers.
·
Completion
of the largest smart meter rollout in the water
industry.
·
Hundreds
of acres of nature-based projects that will deliver environmental
benefits.
·
Support
for hundreds of thousands of customers in difficult circumstances
and at risk of being in water poverty, including for the first
time, a discounted tariff for those with certain medical needs,
paid for by shareholders.
Anglian
Water is the largest water and water recycling company in
England and Wales by geographic area, serving more than
seven million customers in the east of England and Hartlepool. The region is the driest in the
country, with 28% of land below sea level, making it prone to both
drought and flooding. It is also the fastest growing region in the
country and home to a thriving agricultural and burgeoning green
energy industry, all of which have significant demands for water
and drainage.
There will
be no delay to the delivery of Anglian Water's plans for year one
of AMP8 as a result of this referral.
-
ENDS
-
Enquiries:
Regan Harris, Anglian Water
07900210450
/ Press office (24hr): 0871 677 0123
rharris4@anglianwter.co.uk
Anglian
Water Services Financing Plc LEI: 213800DL377MH46PDY63
