Author: Mintel Group Ltd.
Last saved by: HTTP server

Potable Water and Sewerage - UK - April 2015

EXECUTIVE SUMMARY
The market
Capital expenditure tends to be cyclical and determined by the five-year spending periods
Few major capital projects undertaken during AMP5 (2010-15)
Figure 1: UK capital expenditure on water and sewerage services, 2009/10-2013/14
Non-infrastructure maintenance spending dominates sewerage capital expenditure
Non-infrastructure maintenance spending accounts for nearly 40% of water-related capital expenditure in 2013/14
Figure 2: Analysis of sewerage capital expenditure in England and Wales by water and sewerage companies, by type, 2013/14
Figure 3: Analysis of water capital expenditure in England and Wales by water and sewerage companies, by type, 2013/14
Move towards total expenditure in AMP6 2015-20 to reduce bias towards capital programmes
Shift in industry focus towards asset management and maintenance
Total capital expenditure projected to reach £23.4 billion during AMP6
£4.2 billion Thames Tideway Tunnel to represent largest capital project over next decade
Figure 4: Capital expenditure in the water and sewerage industry during AMP6 in England & Wales, 2015/16-2019/20
Market factors
Water Framework Directive (WFD)
Urban Waste Water Treatment Directive (UWWTD)
Figure 5: Sewerage treatment enhancement expenditure driven by UWWTD in England & Wales, 1990-2015
Water retail market to open up to all business customers in England & Wales in 2017
Companies
What we think
KEY INSIGHTS
What are the implications of the Water Framework Directive for the UK water & sewerage industry?
What does the shift towards total expenditure (Totex) and long-term outcomes in AMP6 mean for the industry?
Are companies forming more long-term relationships with their supply chain and delivery partners?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
UK ECONOMY
Overview
Inflation
Interest rates
Consumer spending
Business investment
MARKET FACTORS
Key points
Industry regulation
Legislative environment
European Water Framework Directive (WFD)
Urban Waste Water Treatment Directive (UWWTD)
Figure 6: Sewerage treatment enhancement expenditure driven by UWWTD in England & Wales, 1990-15
Figure 7: Sewerage treatment enhancement expenditure driven by UWWTD in England & Wales graph, 1990-15
The Drinking Water Directive
Revised Bathing Water Directive
Figure 8: UK coastal bathing water compliance with Bathing Water Directive for mandatory coliform standards, as of 2014
Transfer of private sewers in England and Wales
Figure 9: Capital expenditure on private sewers in England & Wales, by water and sewerage company, 2012-15
The Flood and Water Management Act 2010
Water Act 2014 to open up water and sewerage retail competition for all business customers in 2017
INDUSTRY STRUCTURE
Key points
England & Wales
Figure 10: Details of water and sewerage companies, as of March 2015
Figure 11: Details of water-only companies, as of March 2015
Sewerage services
Figure 12: Details of companies that supply sewerage services to water-only companies, as of March 2015
Figure 13: Sewerage customers of water and sewerage companies, household and non-household, 2012/13 and 2013/14
Figure 14: Sewerage customers of water and sewerage companies, household and non-household graph, 2013/14
Sewage treatment processes
Water services
Figure 15: Turnover from water services in England and Wales, by type, 2009/10-2013/14
Regulators
Performance
Figure 16: Internal sewer flooding indicators in England and Wales, by company, 2011/12-2013/14
Figure 17: Ofwat final determinations for sewer flooding expenditure, by water and sewerage company, 2010-15
Figure 18: Expenditure to reduce flooding risk for properties in England & Wales, by water and sewerage company, 2010/11-2014/15
Scotland
Northern Ireland
CAPITAL EXPENDITURE
Key points
Total capital expenditure
Figure 19: Total capital expenditure by water and sewerage companies in England & Wales, 2005-10 and 2010-15
Figure 20: Total capital expenditure by water-only companies in England & Wales, 2005-10 and 2010-15
Figure 21: Actual UK capital expenditure on water and sewerage services, 2009/10-2014/15
Figure 22: UK capital expenditure on water and sewerage services, 2009/10-2013/14
Figure 23: UK capital expenditure on water and sewerage services graph, 2009/10-2013/14
Sewerage-related capital expenditure
Figure 24: Analysis of sewerage-related capital expenditure in England and Wales, by company, 2008/09-2013/14
Figure 25: Analysis of sewerage-related capital expenditure, by water and sewerage companies in England and Wales, 2008/09-2013/14
Figure 26: Analysis of sewerage capital expenditure in England and Wales by water and sewerage companies, by type, 2011/12-2013/14
Figure 27: Sewers renovated and replaced in England and Wales, by company, 2009/10-2013/14
Water-related capital expenditure
Figure 28: Analysis of water related capital expenditure, by water and sewerage companies in England and Wales, 2008/09-2013/14
Figure 29: Analysis of water related capital expenditure, by water and sewerage companies in England and Wales graph, 2008/09-2013/14
Figure 30: Analysis of water capital expenditure in England & Wales, by water and sewerage companies, by purpose, 2013/14
Figure 31: Analysis of water capital expenditure by water-only companies in England & Wales, by type, 2013/14
Figure 32: Analysis of water capital expenditure in England and Wales, by water and sewerage companies, by type, 2011/12-2013/14
Figure 33: Analysis of water capital expenditure in England and Wales graph, by water and sewerage companies, by type, 2013/14
Figure 34: Analysis of water capital expenditure in England and Wales, by water-only companies, by type, 2011/12-2013/14
Figure 35: Analysis of water capital expenditure in England and Wales graph, by water-only companies, by type, 2013/14
Scottish Water capital expenditure
Figure 36: Analysis of Scottish Water capital expenditure on water and sewerage service, 2009/10-2013/14
Figure 37: Analysis of Scottish Water capital expenditure on water and sewerage services graph, 2008/09-2012/13
Figure 38: Progress of Scottish Water to date in the Five Year Investment Programme 2010/15
Northern Ireland capital expenditure
Figure 39: Analysis of Northern Ireland Water capital expenditure on water and sewerage services, 2009/10-2013/14
COMPANY ANALYSIS
Key points
ANGLIAN WATER SERVICES
Anglian Water’s reduces the number of framework agreements for AMP6
Figure 40: Financial analysis of Anglian Water Services, 2010-14
Figure 41: Number of properties billed by Anglian Water, 2012/13-2013/14
Figure 42: Anglian Water, infrastructure details, 2009/10-2013/14
Figure 43: Total capital expenditure of Anglian Water, 2009/10-2013/14
Figure 44: Analysis of sewerage capital expenditure by Anglian Water Services, by type, 2012/13-2013/14
Figure 45: Analysis of water capital expenditure by Anglian Water, by type, 2012/13-2013/14
UNITED UTILITIES WATER
Five delivery partners selected for £3.4 billion AMP6 programme
Figure 46: Financial analysis of United Utilities Water, 2010-14
Figure 47: Number of properties billed by United Utilities, 2012/13-2013/14
Figure 48: United Utilities, infrastructure details, 2009/10-2013/14
Figure 49: Total capital expenditure of United Utilities, 2009/10-2013/14
Figure 50: Analysis of sewerage capital expenditure by United Utilities, by type, 2012/13-2013/14
Figure 51: Analysis of water capital expenditure by United Utilities, by type, 2012/13-2013/14
NORTHUMBRIAN WATER
Figure 52: Financial analysis of Northumbrian Water, 2009-13
Figure 53: Number of properties billed by Northumbrian Water, 2012/13-2013/14
Figure 54: Northumbrian Water, infrastructure details, 2008/09-2012/13
Figure 55: Total capital expenditure of Northumbrian Water, 2008/09-2012/13
Figure 56: Analysis of sewerage capital expenditure by Northumbrian Water, by type, 2012/13-2013/14
Figure 57: Analysis of water capital expenditure by Northumbrian Water, by type, 2011/12-2012/13
SEVERN TRENT WATER
Severn Trent reappoints seven contractors for AMP6
Figure 58: Financial analysis of Severn Trent Water, 2010-14
Figure 59: Number of properties billed by Severn Trent Water, 2011/12-2012/13
Figure 60: Severn Trent Water, Infrastructure Details, 2009/10-2013/14
Figure 61: Total capital expenditure of Severn Trent Water, 2009/10-13/14
Figure 62: Analysis of sewerage capital expenditure by Severn Trent Water, by type, 2012/13-2013/14
Figure 63: Analysis of water capital expenditure by Severn Trent Water, by type, 2012/13-2013/14
SOUTH WEST WATER
South West Water accelerates AMP6 work
Figure 64: Financial analysis of South West Water, 2010-14
Figure 65: Number of properties billed by South West Water, 2012/13-2013/14
Figure 66: South West Water, infrastructure details, 2009/10-2013/14
Figure 67: Total capital expenditure of South West Water, 2009/10-2013/14
Figure 68: Analysis of sewerage capital expenditure by South West Water, by type, 2012/13-2013/14
Figure 69: Analysis of water capital expenditure by South West Water, by type, 2012/13-2013/14
SOUTHERN WATER SERVICES
Southern Water brings project design back in-house for AMP6
Figure 70: Financial analysis of Southern Water Services, 2010-14
Figure 71: Number of properties billed by Southern Water, 2012/13-2013/14
Figure 72: Southern Water, infrastructure details, 2009/10-2013/14
Figure 73: Total capital expenditure of Southern Water Services, 2009/10-2013/14
Figure 74: Analysis of sewerage capital expenditure by Southern Water Services, by type, 2012/13-2013/14
Figure 75: Analysis of water capital expenditure by Southern Water Services, by type, 2012/13-2013/14
THAMES WATER UTILITIES
Figure 76: Financial analysis of Thames Water Utilities, 2010-14
Figure 77: Number of properties billed by Thames Water Utilities, 2012/13-2013/14
Figure 78: Thames Water Utilities, infrastructure details, 2009/10-2013/14
Figure 79: Total capital expenditure of Thames Water Utilities, 2009/10-2013/14
Figure 80: Analysis of sewerage capital expenditure by Thames Water Utilities, by type, 2012/13-2013/14
Figure 81: Analysis of water capital expenditure by Thames Water Utilities, by type, 2012/13-2013/14
DŵR CYMRU CYFYNGEDIG
Figure 82: Financial analysis of Dŵr Cymru Cyfyngedig, 2010-14
Figure 83: Number of properties billed by Dŵr Cymru Cyfyngedig, 2011/12-2012/13
Figure 84: Dŵr Cymru Cyfyngedig, infrastructure details, 2009/10-2013/14
Figure 85: Total capital expenditure of Dŵr Cymru Cyfyngedig, 2009/10-2013/14
Figure 86: Analysis of sewerage capital expenditure by Dŵr Cymru Cyfyngedig, by type, 2012/13-2013/14
Figure 87: Analysis of water capital expenditure by Dŵr Cymru Cyfyngedig, by type, 2012/13-2013/14
WESSEX WATER
Figure 88: Financial analysis of Wessex Water, 2010-14
Figure 89: Number of properties billed by Wessex Water, 2012/13-2013/14
Figure 90: Wessex Water, infrastructure details, 2009/10-2013/14
Figure 91: Total capital expenditure of Wessex Water, 2009/10-2013/14
Figure 92: Analysis of sewerage capital expenditure by Wessex Water, by type, 2012/13-2013/14
Figure 93: Analysis of water capital expenditure by Wessex Water, by type, 2012/13-2013/14
YORKSHIRE WATER SERVICES
Figure 94: Financial analysis of Yorkshire Water Services, 2010-14
Figure 95: Number of properties billed by Yorkshire Water, 2012/13-2013/14
Figure 96: Yorkshire Water, infrastructure details, 2009/10-2013/14
Figure 97: Total capital expenditure of Yorkshire Water Services, 2009/10-2013/14
Figure 98: Analysis of sewerage capital expenditure by Yorkshire Water Services, by type, 2012/13-2013/14
Figure 99: Analysis of water capital expenditure by Yorkshire Water Services, by type, 2012/13-2013/14
STATUTORY WATER COMPANIES
Figure 100: Analysis of water capital expenditure in England and Wales, by water-only companies, by type, 2011/12-2013/14
SCOTTISH WATER
Figure 101: Financial analysis of Scottish Water, 2010-14
NORTHERN IRELAND WATER
Figure 102: Financial analysis of Northern Ireland Water, 2010-14
MARKET FORECAST
Key points
25-year strategic direction statements
Figure 103: UK population, by region, 2013-25
Forecast capital expenditure
England & Wales – AMP6 2015-20
Figure 104: Average expected combined household bill, by water and sewerage companies, 2014/15 and 2019/20
Figure 105: Average expected household water bill, by water-only companies, 2014/15 and 2019/20
AMP6 Expenditure Allowances
Move towards long-term alliances and frameworks across industry
Figure 106: Total expenditure (Totex) allowance for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
Figure 107: Total expenditure (Totex) allowance for AMP6 in England & Wales graph, by water & sewerage company, 2015/16-2019/20
Figure 108: Forecast capital expenditure for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
Figure 109: Forecast capital expenditure for AMP6 in England & Wales graph, by water & sewerage company, 2015/16-2019/20
Figure 110: Forecast capital expenditure for AMP6 in England & Wales graph, by water only company, 2015/16-2019/20
Thames Tideway Tunnel
Figure 111: Estimated cost of Thames Tideway Tunnel, 2014/15-2021/22+
Scotland Investment Programme 2015-2021
Figure 112: Forecast capital expenditure for Scottish Water, 2015/16-2020/21
Northern Ireland Investment Programme 2015/16-2020/21
FURTHER SOURCES AND CONTACTS
Trade associations and regulatory bodies
Trade magazines
Trade exhibitions

M B D | © MBD Limited.