Yorkshire Water sets out £318m investment plan

Yorkshire Water has announced plans for its £318m investment over the next 12 months.

This multi-million pound investment , which will be part funded by Yorkshire Water’s new water and sewerage charges, will ensure the firm meets three major challenges posed by climate change, a growing population, and ageing infrastructure.

As of April 1st, average monthly bills for Yorkshire Water’s customers will rise broadly in line with inflation (RPI) by an average of just over 1%, or £5, to £366 per year.

Annual water and sewerage bills will also continue to remain significantly below the cost of gas and electricity bills that stand at a combined cost of around £1,098, according to Ofgem.

The announcement of new customer charges comes as Yorkshire Water enters the second year of its biggest ever investment programme which will total £3.8bn between 2015 – 2020.

Over the next 12 months, this will equate to around £318m spent on improving water and sewerage services, including drinking water quality and waste water treatment. Investment will also be made to conserve moorland, protect the environment from flooding, and improve rivers.

Richard Flint, chief executive at Yorkshire Water, said: “It is of paramount importance for us to keep our customers’ bills fair and affordable and that’s why we are the second cheapest water firm in the UK.

“The slight increase this year has been agreed with Ofwat and is largely due to inflation and the simple fact that the price of many of the products and services we use as a company has risen.

“Along with income from customer bills, strategic borrowing will also provide a vital revenue stream to enable us to invest £318m. This investment will help us continue to maintain, manage, and improve crucial water and sewerage services that the public rely on.

“It is never an easy decision to increase bills but we have committed with Ofwat to keep our prices lower or approximately at the rate of inflation.”

Among the key investments Yorkshire Water is making over the next five years, includes £30m at its Hull Waste Water Treatment Works to reduce odour; £24m at Rivelin Water Treatment Works near Sheffield to enhance drinking water quality for thousands of residents in Sheffield; and around £10m to improve Whitby Waste Water Treatment Works including the sludge plant, tanks and washwater system.

An independent report by the University of Leeds has also revealed how Yorkshire Water’s investment will deliver economic benefits to the region, with every £1 invested by the company having a knock-on effect in the wider Yorkshire economy of almost double that.

Richard Flint added: “The major investment we are planning over the next five years will have a positive ripple effect on the regional economy, benefitting over 1,000 suppliers that we use and helping us to continue to be one of the largest employers in the region with 2,500 staff.

“The challenges of a rising population, ageing infrastructure and climate change all come with a cost too. By making this investment it will mean we can continue to meet a rising demand for more water, mitigate the impact of weather events such as extreme flooding, and modernise our assets to enhance their performance.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →