Utility Week

UTILITY WEEK | 7TH - 13TH SEPTEMBER 2018 | 15 This week Water sector to invest £50bn in 2020-25 Spending will be used to improve customer services, upgrade the network and clean up rivers The water industry has revealed plans to spend more than £50 billion between 2020 and 2025 – a 13 per cent increase on the current five-year period. Water UK – the representative group for the sector – said the investment will improve services to customers, continue upgrad- ing the network, and deal with issues caused by population growth, new houses and climate change. Every five years, water companies in England submit business plans to the regulator, Ofwat, for approval, as part of its price review. For business plans covering 2020-25, companies sought the views of more than five million customers. In its Manifesto for Water, published on 3 Septem- ber, Water UK summarised some of the most important improvements proposed in England. The document reveals plans for a major investment programme in services, a significant cut in leakage, an overall real-term reduction in bills and an increase in assistance for peo- ple who struggle to pay. It also announced a programme to clean and improve 8,000km of rivers. Water UK chief executive Michael Roberts said: "The water industry's record over the past 30 years – cutting leakage, keeping bills affordable, improving water quality, and cleaning up rivers – has been good, but the business plans offer to take it to another level." Ofwat will now scrutinise all the business plans before publishing an initial assessment of each com- pany's plan on 31 January 2019. LV ENERGY 'Call for ideas' for £90m innovation competition Energy networks have issued a "call for ideas" as they seek partners to help them compete for £90 million of funding in Ofgem's annual Network Innova- tion Competition. Successful applicants will work with network operators to secure shares of up to £70 million available for electricity network projects and up to £20 million available for gas network projects. The call has been sent out by the trade body for the sector – the Energy Networks Association – which said proposals must offer environmental benefits and clear cost advantages for both networks and the general public, while demonstrating genuine innovation. The deadline for submissions is 26 October. ENERGY Post-Brexit stimulus package needed The government has been urged to prepare an emergency post-Brexit stimulus package to replace billions of pounds of lost EU funding for clean energy projects in the event of a no-deal departure. In a new report, climate change thinktank E3G said that ministers should also develop long-term solutions for reversing a recent hiatus in investment that risks being exacerbated by the inability to access cheap finance from EU institutions. The paper highlighted a 56 per cent drop in clean energy investments in the UK between 2016 and 2017, which it partly attributed to domestic policy decisions. But it also warned that the uncertainty created by the vote to leave the EU has had a "chill- ing effect" on spending: "Whilst it can be difficult to untangle the possible causes for the reduction in investment, the precipitous- ness of the investment decline between 2016 and 2017 lends support to the idea that Brexit has played a decisive role in put- ting clean energy investments on hold." ENERGY Severn Trent to buy renewables firm Severn Trent is to purchase renewable energy generation company Agrivert for a total consideration of £120 million. The acquisition takes Severn Trent's investment in energy and renewables to approximately £300 million by 2020. It will add 106GWh per annum of energy generation to the 354GWh currently produced by Severn Trent's energy and renewables portfolio. Rivers: plans to clean up 8,000km in England Finance & Investment Stock watch 750 740 730 720 SEVERN TRENT SHARE PRICE, FIVE DAY 30 Aug 3 Sep 4 Sep UNITED UTILITIES SHARE PRICE, FIVE DAY The three publicly traded water companies have all seen their stock prices dip since submitting their business plans for the PR19 price control to regulator Ofwat on Monday morning. At the time of writing, Severn Trent's and Pennon Group's shares were both down more than 1 per cent at 1,961p and 756p respectively. United Utilities' shares had fallen by more than 2 per cent to 722p. 2020 2000 1980 1960 30 Aug 31 Aug 3 Sep 4 Sep 31 Aug pence pence

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