Wessex Water has today asked the Competition and Markets Authority (CMA) to review Ofwat’s Final Determination setting how much the company can invest in vital water and sewerage improvements over the next five years.
The regulator’s FD on Wessex Water’s AMP8 business plan allowed for £4.2 billion of total expenditure – £850 million short of what the company’s own calculations have shown are required to meet its obligations, customer expectations, and support growth in the region.
Wessex Water proposed to almost double its investment programme over the next five-year period with more than a quarter of the investment being used to remove nutrients from treated wastewater discharges so housebuilding and growth can continue in the Wessex Water region, while protecting the water environment.
The company’s Chief Executive, Ruth Jefferson, said:
“We’ve spent a lot of time listening to customers’ thoughts and concerns about how we can help the environment, protect rivers and beaches and make sure there is enough water in the pipes for generations to come.
“We agree that there are improvements to be made, which means upgrading and building new infrastructure as well as harnessing nature to safeguard water quality. We don’t believe Ofwat’s final determination will allow us to deliver what our customers have asked for.”
Wessex Water estimates that the additional allowance it is requesting would result in average customer bill increases of 29% between 2025 and 2030, adding £12 to monthly bills by 2030 before inflation, compared with the 21% (£9 on monthly bills) increase allowed by Ofwat.
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