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Welsh Water to invest £1.7bn in network after £77m profit

Business, News | Richard Gurner | Published: 13:00, Thursday June 25th, 2015.
Last updated: 13:41, Thursday June 25th, 2015

FLUSH: Welsh Water has announced underlying profits of £77m for 2014/15
FLUSH: Welsh Water has announced underlying profits of £77m for 2014/15

Dwr Cymru Welsh Water has revealed plans to invest £1.7 billion into its water network over the next five years after an increase in profits.

The company, which is headquartered in Nelson, has reported an underlying profit of £77 million for 2014/15.

The not-for-profit firm has said all the money will be reinvested in its business and has unveiled a new five-year £1.7bn investment programme.

Dwr Cymru Welsh Water’s Chief Executive Chris Jones said: “This is our most ambitious investment programme to date and reflects our commitment to ensure customers can have complete confidence in our essential services.  Our programme drives further innovation, learning from international best practice.

“While delivering our record investment programme, we are aware of the difficulties some of our customers genuinely face in paying their bills. That is why we have launched a new social tariff which will help up to 100,000 of our most disadvantaged customers.

“With the continued commitment of our colleagues, and our increased focus on innovation, I am confident that we will rise to the challenge so that we can continue to deliver industry-leading levels of financial, operational and environmental performance which are crucial to ensuring that we realise our vision of earning the trust of our customers every day.”

Bob Ayling, chairman of Welsh Water owner Glas Cymru, said: “This has been another good year for D?r Cymru Welsh Water. We have improved our operational performance again; maintained very high levels of customer satisfaction; achieved excellent financial results allowing for record investment; and for the sixth successive year kept prices below inflation. But we are still not satisfied and now aspire to become a truly customer-led water and sewerage company.”

Last month Dwr Cymru Welsh Water announced it was cutting 360 jobs over the next five years as part of a restructure.

Industry regulator Ofwat has set the company ‘challenging’ efficiency targets until 2020 and the cuts are as a result of these.

The company has said the aim is to avoid compulsory redundancies through selective voluntary redundancy, retirements and not filling vacancies.

Since 2001, Dwr Cymru Welsh Water has been owned by Glas Cymru, which was formed in April 2000 for the sole purpose of acquiring and owning Welsh Water.

Glas Cymru is a company limited by guarantee with no shareholders and its business model is unique in the water industry.

As part of its £26bn network of assets, the company operates and maintains 27,000km of water mains, 65 water treatment works and 92 reservoirs. It is also responsible for some 30,000km of sewer pipes and nearly 900 sewage treatment works.

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