Welsh Water celebrates 20th anniversary
THE only not-for-profit utility company in England and Wales, Welsh Water, is celebrating its 20th anniversary.
Following the break-up of once listed water to electricity group Hyder, and a short-term ownership by Western Power Distribution, Welsh Water was acquired in 2001 by former Hyder executives Chris Jones and Nigel Annett, who successfully refinanced its £1bn debt through an innovative bond issue.
It was acquired through singlepurpose company Glas Cymru.
Over the past 20 years, more than £440m that would have been distributed to shareholders if Welsh Water had remained a listed company has allowed higher levels of reinvestment.
Welsh Water says this has included:
Keeping bill increases below the RPI rate of inflation since 2010;
Support to more than 140,000 of its most vulnerable customers;
Investment of more than £1bn in wastewater systems to help drive up bathing water quality, which plays such an important role in the tourism industry; and
Delivering an education outreach programme that has involved almost 600,000 pupils.
In response to the Covid pandemic the company further increased its support for customers by arranging flexible payment plans for household customers struggling to pay their water bills. It also suspended bills for 45,000 business customers who were forced to close during the first lockdown.
It also made a donation to every foodbank across Wales to help them provide support to customers affected by the pandemic restrictions.
To mark its 20th anniversary, Welsh Water has decided to continue to support the work of local foodbanks during the pandemic by donating a further £100,000 to 100 different foodbanks across the communities it serves.
As part of its established community fund, it will also create a £10,000 “mini-fund” for the week where notfor-profit community organisations and groups can apply for funding to support local causes and schools can also apply for a special science kit to help support pupils.
Chief executive of Welsh Water Peter Perry said: “In the 20 years since Glas Cymru acquired Welsh Water and pioneered a not-for-profit ownership model in the water sector, it has proved its worth, delivering financing efficiency and building customer trust by enabling colleagues to focus on delivering our core services as well as applying over £440m to the benefit of customers.
“Today is as much about our customers and the communities we serve as it is about our company, which is why we have decided to continue to support the foodbanks that are tackling soaring demand for their services in the face of the pandemic and wider need.
“We are focused on the long term and have ambitious plans for the years ahead. With the wellbeing of future generations as paramount, the Glas model will evolve to meet new challenges and circumstances, keeping pace with societal issues and growing customer concern about climate change and their desire to invest for the long term.”
Chairman of Glas Cymru Alistair Lyons said: “As a board, we are proud of what we have achieved over the past 20 years thanks to our not-forshareholder business model.
“Whilst there is much to celebrate about the past, there is also much to look forward to, and plan for, in the future.
“Long-term asset resilience, increased environmental ambition and value-for-money plans for our customers alongside a more personalised service are just some of what Welsh Water is investing in for the long term.”
Welsh Water employs just over 3,500. It has 1.4 million household and 100,000 business customers.