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.”