Table of Contents
Executive Summary
-
- The market
- Capital expenditure growth slowed in 2014/15 as focus shifted towards preparing for work for the next five-year spending cycle AMP6 (2015-20)
- Capital spending during AMP5 (2010-15) focused on networks and capital maintenance
- Capital expenditure reaches £4.45 billion in 2015/16, the first year of AMP6
-
- Figure 1: UK Capital Expenditure on Water and Sewerage Services, 2015/16
- Maintaining the long-term capability of the assets noninfrastructure expenditure dominates capex
-
- Figure 2: Analysis of sewerage capital expenditure in England and Wales, by water and sewerage companies, by type, 2015/16
- Figure 3: Analysis of water capital expenditure in England and Wales, by water and sewerage companies, by type, 2015/16
- Move towards total expenditure in AMP6 2015-20 should reduce bias towards capital programmes
- Shift in industry focus towards asset management and maintenance
- £4.2 billion Thames Tideway Tunnel to represent largest capital project over next decade
-
- Figure 4: Forecast capital expenditure for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
- Market factors
- Environmental legislation
- Climate change
- Population and household growth
- Affordability
- Technological change
- Water retail market in England opens up to all business customers in 2017
- Companies
- What we think
Key Insights
-
- What are the implications of Brexit on the UK water and sewerage sector?
- What recent developments are preparing the industry for the opening of the non-domestic retail market in 2017?
- What does the shift towards total expenditure (Totex) and long-term outcomes in AMP6 mean for the industry?
- What are the initial expectations of the regulatory framework for the Price Review and beyond?
Introduction
-
- Definitions
- Some other industry specific definitions:
- Methodology
- Abbreviations
- Market positioning
UK Economy
-
- Overview
-
- Figure 5: UK GDP quarterly development, 2003-16
-
- Figure 6: UK GDP in economic downturns and recoveries since 1979
- Inflation
- Interest rates
- House prices
-
- Figure 7: UK House price changes, 2004-16
- Consumer spending
- Manufacturing
-
- Figure 8: UK manufacturing, 2014-16
- Business investment
-
- Figure 9: UK GFCF 2003-16
- Imports
- Exports
Market Factors
-
- Key points
- Industry regulation
- Legislative environment
- European Water Framework Directive (WFD)
- Urban Waste Water Treatment Directive (UWWTD)
- The Drinking Water Directive
- Revised Bathing Water Directive
- Implications of Brexit on the UK water and sewerage sector
- Transfer of private sewers in England and Wales
-
- Figure 10: Capital expenditure on private sewers in England & Wales, by water and sewerage company, 2012-15
- The Flood and Water Management Act 2010
- Water and sewerage retail competition opens up for all business customers in England in April 2017
- No government decision yet to open up household retail market to competition
Industry Structure
-
- Key points
- England & Wales
-
- Figure 11: Details of water and sewerage companies, as of March 2017
-
- Figure 12: Details of water-only companies, as of March 2017
- Households billed by water and sewerage companies
-
- Figure 13: Number of households billed by water and sewerage companies, 2015/16
-
- Figure 14: Households billed by water and sewerage companies, 2015/16
- Sewerage services
-
- Figure 15: Details of companies that supply sewerage services to water-only companies, as of March 2017
- Sewage treatment processes
- Sludge (biosolids) treatment
- Water services
- Regulators
- Performance
-
- Figure 16: Internal sewer flooding indicators in England and Wales, by company, 2011/12-2014/15
- Scotland
- Northern Ireland
Capital Expenditure
-
- Key points
- Total capital expenditure
-
- Figure 17: Total capital expenditure by water and sewerage companies in England & Wales, 2005-10 and 2010-15
-
- Figure 18: Total capital expenditure by water-only companies in England & Wales, 2005-10 and 2010-15
- Contracts for AMP5 tendered early to reduce boom and bust cycle
-
- Figure 19: Actual UK capital expenditure on water and sewerage services, 2009/10-2014/15
-
- Figure 20: UK capital expenditure on water and sewerage services, 2010/11-2014/15
-
- Figure 21: UK capital expenditure on water and sewerage services, 2010/11-2014/15
-
- Figure 22: UK capital expenditure on water and sewerage services, 2015/16
- Sewerage-related capital expenditure
-
- Figure 23: Analysis of sewerage-related capital expenditure in England and Wales, by company, 2010/11-2014/15
-
- Figure 24: Analysis of sewerage-related capital expenditure, by water and sewerage companies in England and Wales, 2010/11-2014/15
- Figure 25: Analysis of sewerage-related capital expenditure, by water and sewerage companies in England and Wales, 2015/16
-
- Figure 26: Analysis of sewerage capital expenditure in England and Wales by water and sewerage companies, by type, 2011/122014/15
-
- Figure 27: Analysis of sewerage capital expenditure in England and Wales by water and sewerage companies, by type, 2015/16
- Water-related capital expenditure
-
- Figure 28: Analysis of water related capital expenditure, by water and sewerage companies in England and Wales, 2010/11-2014/15
-
- Figure 29: Analysis of water-related capital expenditure, by water and sewerage companies in England and Wales, 2010/11-2014/15
- Figure 30: Analysis of water-related capital expenditure, by water and sewerage companies in England and Wales, 2015/16
-
- Figure 31: Analysis of water capital expenditure in England and Wales, by water and sewerage companies, by type, 2011/12-2014/15
-
- Figure 32: Analysis of water capital expenditure in England and Wales, by water-only companies, by type, 2011/12-2014/15
-
- Figure 33: Analysis of water capital expenditure in England and Wales by water and sewerage companies, by type, 2015/16
-
- Figure 34: Analysis of water capital expenditure in England and Wales, by water and sewerage companies, by type, 2015/16
- Figure 35: Analysis of water capital expenditure in England and Wales by water only companies, by type, 2015/16
-
- Figure 36: Analysis of water capital expenditure in England and Wales, by water-only companies, by type, 2015/16
- Scottish Water capital expenditure
-
- Figure 37: Analysis of Scottish Water capital expenditure on water and sewerage services, 2011/12-2015/16
-
- Figure 38: Analysis of Scottish Water capital expenditure on water and sewerage services, 2011/12-2015/16
- Figure 39: Progress of Scottish Water to date in the five year investment programme 2010/15
- Northern Ireland capital expenditure
-
- Figure 40: Analysis of Northern Ireland Water capital expenditure on water and sewerage services, 2011/12-2015/16
Company Analysis
-
- Key points
Anglian Water Services
-
- Anglian Water reduces the number of framework agreements for AMP6
- Non-household retail market
- Anglian Water Business teams up with NWG Business to create Wave - a new multi-utility retailer for the non-household retail market
-
- Figure 41: Financial analysis of Anglian Water Services, 2012-16
-
- Figure 42: Segmental revenue analysis of Anglian Water Services, 2015/16
- Capital expenditure in 2015/16
-
- Figure 43: Total capital expenditure of Anglian Water, 2015/16
-
- Figure 44: Analysis of sewerage capital expenditure by Anglian Water Services, by type, 2015/16
- Figure 45: Analysis of water capital expenditure by Anglian Water, by type, 2015-16
United Utilities Water
-
- United Utilities and Severn Trent join forces to set up new company serving the non-household retail market
- Five delivery partners selected for £3.5 billion AMP6 programme
-
- Figure 46: Financial analysis of United Utilities Water, 2012-16
-
- Figure 47: Segmental revenue analysis of United Utilities, 2015/16
- Capital expenditure
-
- Figure 48: Total capital expenditure of United Utilities, 2015/16
-
- Figure 49: Analysis of sewerage capital expenditure by United Utilities, by type, 2015/16
- Figure 50: Analysis of water capital expenditure by United Utilities, by type, 2015/16
Northumbrian Water
-
- Northumbrian Water framework partnership contracts for AMP6
- Company adopts new operating model for supply chain interactions to delivery investment programme more efficiently
- NWG Business teams up with Anglian Water to create a multi-utility retailer for the non-household market
- Northumbrian Water only wastewater company to use 100% of the sludge remaining after sewage treatment to produce renewable energy
-
- Figure 51: Financial analysis of Northumbrian Water, 2012-16
-
- Figure 52: Segmental revenue analysis of Northumbrian Water, 2015/16
-
- Figure 53: Total capital expenditure of Northumbrian Water, 2015/16
- Figure 54: Analysis of sewerage capital expenditure by Northumbrian Water, by type, 2015/16
-
- Figure 55: Analysis of water capital expenditure by Northumbrian Water, by type, 2015/16
Severn Trent Water
-
- Severn Trent reappoints seven contractors for AMP6
- Severn Trent and United Utilities join forces to set up new company serving the non-household retail market
-
- Figure 56: Financial analysis of Severn Trent Water, 2012-16
-
- Figure 57: Segmental revenue analysis of Severn Trent Water, 2015/16
- Capital expenditure
-
- Figure 58: Total capital expenditure of Severn Trent Water, 2015-16
-
- Figure 59: Analysis of sewerage capital expenditure by Severn Trent Water, by type, 2015/16
- Figure 60: Analysis of water capital expenditure by Severn Trent Water, by type, 2015/16
South West Water
-
- South West Water accelerates AMP6 work after early receipt of draft determinations in 2014
- Pennon acquires Bournemouth Water in 2015
- Non-household retail market
-
- Figure 61: Financial analysis of South West Water, 2012-16
-
- Figure 62: Segmental revenue analysis of South West Water, 2015/16
- Capital expenditure
-
- Figure 63: Total capital expenditure of South West Water, 2015/16
- Figure 64: Analysis of sewerage capital expenditure by South West Water, by type, 2015/16
-
- Figure 65: Analysis of water capital expenditure by South West Water, by type, 2015/16
Southern Water Services
-
- Southern Water brings project design back in-house for AMP6
- Southern Water sells non-household retail business to Business Stream
-
- Figure 66: Financial analysis of Southern Water Services, 2012-16
-
- Figure 67: Segmental revenue analysis of Southern Water, 2015/16
- Capital expenditure
-
- Figure 68: Total capital expenditure of Southern Water Services, 2015/16
-
- Figure 69: Analysis of sewerage capital expenditure by Southern Water Services, by type, 2015/16
- Figure 70: Analysis of water capital expenditure by Southern Water Services, by type, 2015/16
Thames Water Utilities
-
- AMP5 investment programme
- Thames Tideway Tunnel
- Two alliances to deliver significant proportion of AMP6 programme, with Thames Water awarding the biggest contracts in water industry history
- Non-household retail market
- Thames Water hit by record fine
-
- Figure 71: Financial analysis of Thames Water Utilities, 2012-16
-
- Figure 72: Segmental revenue analysis of Thames Water Utilities, 2015/16
- Capital expenditure
-
- Figure 73: Total capital expenditure of Thames Water Utilities, 2015/16
- Figure 74: Analysis of sewerage capital expenditure by Thames Water Utilities, by type, 2015/16
-
- Figure 75: Analysis of water capital expenditure by Thames Water Utilities, by Type, 2015/16
D(r Cymru Cyfyngedig
-
- Dwr Cymru Welsh Water selects three delivery partners for new Capital Delivery Alliance
- Company outlook
-
- Figure 76: Financial analysis of D(r Cymru Cyfyngedig, 2012-16
-
- Figure 77: Segmental revenue analysis of D(r Cymru Cyfyngedig, 2015/16
-
- Figure 78: Total capital expenditure of D(r Cymru Cyfyngedig, 2015/16
- Figure 79: Analysis of sewerage capital expenditure by D(r Cymru Cyfyngedig, by type, 2015/16
-
- Figure 80: Analysis of water capital expenditure by Dwr Cymru Cyfyngedig, by Type, 2015/16
Wessex Water
-
- Wessex Water takes 51% stake in Albion Water
- Non-household retail market
-
- Figure 81: Financial analysis of Wessex Water, 2012-16
-
- Figure 82: Segmental revenue analysis of Wessex Water, 2015/16
- Capital expenditure
-
- Figure 83: Total capital expenditure of Wessex Water, 2015/16
-
- Figure 84: Analysis of sewerage capital expenditure by Wessex Water, by type, 2015/16
- Figure 85: Analysis of water capital expenditure by Wessex Water, by type, 2015/16
Yorkshire Water Services
-
- Non-household retail market
-
- Figure 86: Financial analysis of Yorkshire Water Services, 2012-16
-
- Figure 87: Segmental revenue analysis of Yorkshire Water, 2015/16
-
- Figure 88: Total capital expenditure of Yorkshire Water Services, 2015/16
- Figure 89: Analysis of sewerage capital expenditure by Yorkshire Water Services, by type, 2015/16
-
- Figure 90: Analysis of water capital expenditure by Yorkshire Water Services, by type, 2015/16
Statutory Water Companies
-
-
- Figure 91: Analysis of water capital expenditure in England and Wales, by water-only companies, by type, 2011/12-2014/15
-
- Figure 92: Analysis of water capital expenditure in England and Wales by water only companies, by type, 2015/16
-
Scottish Water
-
-
- Figure 93: Financial analysis of Scottish Water, 2011-16
-
Northern Ireland Water
-
-
- Figure 94: Financial analysis of Northern Ireland Water, 2012-16
-
Market Forecast
-
- Key points
- Future challenges facing the water and sewerage sector
-
- Figure 95: UK population, by region, 2014-36
- Expectations of regulatory framework for price review 2019 and beyond
- Opening up of non-household retail market in England to provide new opportunities for water and sewerage companies
- Forecast capital expenditure
- England & Wales – AMP6 2015-20
-
- Figure 96: Average expected combined household bill, by water and sewerage companies, 2014/15 and 2019/20
-
- Figure 97: Average expected household water bill, by water-only companies, 2014/15 and 2019/20
- AMP6 expenditure allowances
- Move towards long-term alliances and frameworks across industry
-
- Figure 98: Total expenditure (Totex) allowance for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
-
- Figure 99: Total expenditure (Totex) allowance for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
- Figure 100: Forecast capital expenditure for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
-
- Figure 101: Forecast capital expenditure for AMP6 in England & Wales, by water only company, 2015/16-2019/20
- Thames Tideway Tunnel
-
- Figure 102: Estimated cost of Thames Tideway Tunnel, 2014/15-2021/22+
- Scotland Investment Programme 2015-2021
-
- Figure 103: Forecast capital Expenditure for Scottish Water, 2015/16-2020/21
- Northern Ireland Investment Programme 2015/16-2020/21
Further Sources & Contacts
-
- Association for Consultancy and Engineers
- Alliance House
- British Water
- British Waterways Board
- Chartered Institution of Water & Environmental Management
- International Water Association
- OFWAT
- Society of British Water & Wastewater Industries
- Trade magazines
- Global Water Intelligence
- Modern Utility Management
- Utility Week
- Water & Environment Magazine
- Water Active
- Water & Sewerage Journal
- Water & Wastewater Treatment (Monthly)
- Water21
- Water, Energy & Environment Journal
- Waterlines
- WaterWorld
- WET News
- World Water & Environmental Engineering
- Trade exhibitions
- Utility Week Live incorporating IWEX 2017
- edie live 2017
Back to top