Utility Week

UTILITY WEEK | 22ND - 28TH FEBRUARY 2019 | 25 Customers Balancing bills and investment "The water companies' draft business plans spell out an investment programme of more than £50bn on the back of fallingbills." Chief executive's view Michael Roberts, Water UK W e've had two major milestones in the past fortnight, both very important for the water industry in di erent ways. The rst is the initial assessment from Ofwat on water companies' dra• business plans for England and Wales from 2020 to 2025. The dra• plans were created a• er seeking the views of ve million customers to understand what is most important to them. Taken together, those plans would mean ten years of falling bills, the most ambitious leak- age programme in 20 years, and an expanded ve-year investment programme of more than £50 billion. It was heartening to hear Ofwat chief executive Rachel Fletcher acknowledge that companies had listened to the customers they serve. She said: "We're seeing an increased focus on the things closest to people's hearts such as keeping bills a ordable, cutting leakage, protecting the environment and helping those most inˆneed." And as acknowledged by environment secretary Michael Gove in a letter to our chair following Ofwat's assessment, there is a step change in support for vulner- able and less well-o customers – the plans would nearly double the help for people who strug- gle to pay their bills. Wildlife and the wider environment would bene t from the plans too, with 8,000km of rivers due to be improved. In what is a normal part of the price review process, a number of companies will now work with Ofwat to under- stand and address issues raised by the regulator. There's no doubt that will involve some challenging conversations, not least in striking the right balance between bills on the one hand and, on the other, investment which bene ts customers and the environment. Which brings me to the other signi cant milestone, which was our announcement of the industry's invest- ment for the coming year and changes to the average bill. We revealed that water companies in England and Wales will invest more than £8 billion in 2019/20, coming at the end of a ve-year, £44 billion spending commitment. Over that ve-year period more than 370 million litres of water a day will be prevented from leaking from Water companies in England and Wales will invest more than £8 billion in 2019/20, coming at the end of a fi ve-year, £44 billion spending commitment. pipes, nearly 5,000 fewer properties will be ˜ ooded with sewer water, and more than 50 beaches will have cleaner water. Water companies are also on track to deliver on a ve-year commitment to deliver nancial support to an additional one million people by 2020, with all com- panies having social tari s in place to provide reduced water bills for customers who struggle to pay. But although overall investment continues at high levels, the average household water and sewerage bill in England and Wales for 2019/20 has been kept down – the average bill will change by less than in˜ ation for the sixth year in a row. Overall, bills are going down by more than 5 per cent in real terms between 2015 and 2020, and by 2025 there will have been over a decade of falling bills once in˜ ation is taken into account. Falling bills, increasing investment, more focus on customers and communities; these are all signs that the water industry is working hard in the public interest. There is much to do to achieve our ambitions for the future, but we will do everything we can to live up to the deservedly high expectations of our customers.

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