Decision by Board to request Ofwat to refer its PR19 Final Determination to the Competition and Markets Authority (CMA)
14 February 2020
Anglian Water, the water and water recycling company covering the largest part of England and Wales, announces that its Board has asked Ofwat to refer its PR19 Final Determination to the CMA. Ofwat’s Final Determinations were published on 16 December 2019.
Chief Executive Peter Simpson said:
“The Anglian region faces specific challenges brought about by a changing climate and a population growing faster than almost anywhere else in the UK. Our plan aimed to address these challenges, and our customers wholeheartedly supported it. They want us to invest now, not wait. We also recognise that delaying now will mean that costs for customers in future will be much higher.
“Social and environmental needs are firmly embedded in our business purpose. We have a long term focus on improving the resilience of the region, and investing in infrastructure to cope with the impacts of climate change and population growth.
“As we do not believe the Final Determination enables us to meet these needs, we are making use of the next step in the regulatory process and asking the CMA to consider if the right balance has been struck between bill reductions and investment.
“Throughout the CMA process we will remain absolutely focused on continuing to deliver operational excellence and great service for our customers.”
Anglian Water is the largest water and water recycling company in England and Wales by geographic area, serving more than six million customers in the east of England and Hartlepool. The region is the driest in the country, with just 600mm of rain each year, and one of the fastest growing.
Anglian Water’s Business Plan
Anglian Water’s business plan was created following consultation with more than half a million customers and stakeholders. Multiple rounds of consultation and engagement revealed a clear preference for a plan that sought to take action now to address the challenges of a changing climate and a growing population, delivered for a proposed 1% reduction in bills. The plan proposed total investment of £6,460.5m. Ofwat’s Final Determination offers £5,712.7m, a gap of £747.8m, with bills coming down by 10%.
Anglian’s responsible and sustainable approach to its business delivers long-term value for customers, employees, stakeholders and the environment. It is on track to become a net zero carbon business by 2030; it has reduced leakage by a third since privatisation to reach industry-leading levels; reduced average bills by 17% in real terms; reduced leakage; cut capital carbon emissions by 58% from 2010 levels and reduced operational carbon emissions by 29% in comparison to the 2015 baseline. Ofwat’s initial assessment (31 January 2019) of Anglian’s PR19 Plan recognised Anglian for its ambitious and innovative approach to engaging customers.
Anglian Water’s investors are pension funds (including UK local authority pension funds), and long-term infrastructure investors and fund managers. They include Canada Pension Plan Investment Board (CPP Investments), 32.9%; IFM Investors, 19.8%; First Sentier Investors (known as First State Investments outside of Australia), 15.6%; Infinity Investments SA, 16.7%; and Camulodunum Investments (including Dalmore and GLIL), 15%.
In recognition of its achievements, Anglian was named ‘Water Company of the Year 2019’ at the Water Industry Awards and Glassdoor’s ‘Best Places to Work: Employees’ Choice 2019’. Anglian has previously been awarded ‘Utility of the Year 2018’ (Utility Week) and ‘Responsible Business of the Year 2017’ (Business in the Community). The company also holds a Queens Award for Enterprise for Sustainable Development.