WET News

Y orkshire Water could be the rst in its sector to raise funds by use of a "social bond", enabling ethical investors to directly nance some of its plans for the next ve years. The company said plans to use natural • ood management techniques to reduce • ood risk for customers in Hull, Calderdale and the Aire Valley could, for example, be nanced by these means. Speaking at credit reference agency Moody's 2017 UK water sector conference, Liz Barber, group director of nance, regulation & markets at Yorkshire Water, said the utility intends to reduce borrowing costs and simplify its nances as part of a long-term drive to enhance service for customers. The company's gearing, which currently equates to 76% of its total asset value, is set to fall towards 70% by 2020, reducing interest costs and creating headroom for Yorkshire Water considers nancing plans through 'social bonds' investment in imp- rovements to customer services, both in the next two years and also over the longer term. O" shore banking arrangements, which are used in the sector to manage high levels of borrowing, are to be removed. Yorkshire Water is also taking measures to reduce annual • The utility intends to reduce borrowing costs – and close its o shore arrangements in the Cayman Islands. interest costs by strengthening its balance sheet. Barber said: "By reducing what we spend on interest costs it means that we'll have more money to invest in better service and we hope to announce what this might involve next month. "Customers expect us to provide safe and reliable services and we have a responsibility to have safe and resilient nances so that we meet their expectations. They want to know that we have the • exibility to cope with unplanned events like the last major • oods in Yorkshire in 2015. By reducing our borrowing costs we're better able to cope with this type of event, which on its own cost some £57M." Barber also committed to close the rm's o" shore The Energy & Utilities Independent Assessment Service recently passed the 100 mark of achievers that have completed their apprenticeships. T he National Joint Utilities Group (NJUG), the trade association for utilities and their contractor partners on street works issues, has rebranded as Street Works UK. The relaunch also includes a new strapline,£ Connecting communities, Enabling growth, which£ re• ects the value that street works add to consumers and the wider UK economy by maintaining, upgrading and building new infrastructure. The new identity will more clearly re• ect the role that the trade association plays in promoting this message. Bob Gallienne, Street Works Name change for NJUG UK CEO, commented: "I am excited by this change. While the NJUG name is well understood within the industry, an organisational name which more clearly communicates what we do and who we are is necessary for us to be able to add even more value to our members." Thank you to member @Ameyplc highlighting the important workforce renewal & skills challenges in our sector and o ering key solutions. @EUSkills Supply of talent tighter than ever, with 4.4% unemployment rate, lowest since 1975. @EUSkills Our partnership with @InstWater, aims to ensure a skilled workforce in the #water sector. @EUSkills WET News is registered at Stationers' Hall. Origination by Faversham House and TR Clash Ltd. Printed by Buxton Press, Palace Road, Buxton, Derbyshire, SK17 6AE. Copyright 2017. Faversham House. No part of this publication may be reproduced without prior written permission from the publishers. Every e ort is made to ensure the accuracy of material published in WET News. However, Faversham House will not be liable for any inaccuracies. The views expressed by contributors are not necessarily those of the editor or publishers. The text and cover paper are manufactured from certi— ed sustainable sources and are produced with reduced environmental impacts via a recognised and independently audited management scheme. Technical articles of full page, or more appearing in this journal are indexed by British Technical Index. Editor Maureen Gaines: maureengaines@fav-house.com Ad sales Tom Romer: tomromer@fav-house.com Classifi ed sales Mark Scott: markscott@fav-house.com Production controller Sharon Miller: sharonmiller@fav-house.com Publisher Angela Himus: angelahimus@fav-house.com Published by Faversham House Ltd, Faversham House, Windsor Court, Wood Street, East Grinstead, West Sussex, RH19 1UZ Call: 01342 332000 1yr: UK £115 Overseas (airmail) £129/$181 2yr: UK £203 Overseas (airmail) £231/$324 Tel: 01342 332 2031 Email: subscriptions@fav-house.com Search WET News' archives for more jobs, news, features, products and services, events and training courses. wwtonline.co.uk WET News is a member of the Independent Press Standards Organisation (which regulates the UK's magazine and newspaper industry). We abide by the Editors' Code of Practice and are committed to upholding the highest standards of journalism. If you think that we have not met those standards and want to make a complaint, please contact the editor. If we are unable to resolve your complaint, or if you would like more information about IPSO or the Editors' Code, contact IPSO on 0300 123 2220 or visit www.ipso.co.uk Average circulation Jan-Dec 2016: 6,110 Always #soproud to work @NorthumbrianH2O .. want to join us? Come on in - the water's great! @networkedtalent #sunderlandtap #waterindustry @S_Salter_ Low HE leaver interest in our sector further squeezed by 4% drop in university apps. To track labour market movement @EUSkills "They want to know that we have the flexibility to cope with unplanned events like the last major floods in Yorkshire in 2015. By reducing our borrowing costs we're better able to cope with this type of event, which on its own cost some £57M" Liz Barber, Yorkshire Water arrangements in the Cayman Islands: "There is a real challenge to the water industry's legitimacy at the moment and complex nancial structures only add to public concern as to the way in which companies are nanced. We have some o" shore companies in our structure which are no longer necessary or appropriate and we're taking steps to remove these as soon as possible." Yorkshire Water currently has a 'stable' grade rating from Moody's. In July, Moody's stated that this "re• ects the measures that the company has taken to reduce gearing and improve its long-term interest rate exposure… as well as ongoing reductions in distributions to external shareholders". NOVEMBER 2017 WET NEWS 3

• Cover