Anglian Water Services Financing Plc - Anglian Water Services Financing Plc Parent Company Decision to Pursue CMA Referral

 

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.

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Enquiries:

Regan Harris, Anglian Water

07900210450 / Press office (24hr): 0871 677 0123

rharris4@anglianwter.co.uk

Anglian Water Services Financing Plc LEI: 213800DL377MH46PDY63