Welsh Water reports record investment in pursuit of performance improvement

Welsh Water has reported record capital investment of £295m for the first half of 2024/25.

It recognised it was behind target on metrics including pollutions, leakage and supply interruptions but said it was implementing detailed plans to recover from its two-star environmental rating and ‘lagging behind’ classification from Ofwat.

In September, it successfully issued £600m of green bonds, a move the company said "reinforced its position as a premier credit in the water sector, allowing it to secure funding at a lower cost than its peers”.

Welsh Water forecast that it would complete its £2.1bn investment programme in 2020-25, and said it was targeting a £4bn spending package in 2025-30, with £2.5bn of that focused on environmental improvement. This includes £400m of ‘shovel ready’ schemes due to be implemented in the first year of the next investment cycle.

Chief executive Peter Perry said: “We take our responsibilities very seriously and we will rise to the challenge in those areas where our performance has not met the high standards that we expect of ourselves, or that customers expect from us. Our staff have worked hard over the last six months to place the company in the best position possible as we prepare for our new programme of investment for 2025-2030.”

• Welsh Water has appointed Binnies to its AMP8 Capital Design and Build Framework. Binnies will deliver essential infrastructure and treatment projects and, working under Welsh Water’s Capable Owner structure, be involved early to ensure the solutions selected are cost-effective and buildable.