Our Plan 2025 to 2030

Anglian Water’s business plan proposed over £11 billion of essential investment in the East of England. It was created in consultation with our customers and stakeholders to meet the needs of our region now and in the future.

In the East of England, with four of the fastest growing cities in the UK, as well as the Cambridge-Oxford Arc, the levels of investment needed are significant. The Government has made clear its priority to drive growth to stimulate the economy and has already highlighted the critical role water plays in facilitating this.

Having factored in nearly £1billion of efficiency savings, our PR24 plan was already stretching and to secure this unprecedented scale of investment, it requires a viable sector, set up for the long term. With this in mind, we need to make use of the next step in the regulatory process and ask the CMA to reconsider whether the right balance has been struck.

Our £11billion investment plan was designed to support our region and prepare it against the unprecedented pressures of climate change and population growth. This sustained investment would help us prepare for these challenges, by delivering essential investment in water and sewerage infrastructure, and protecting and enhancing the environment – all of which will create jobs and bolster the local economy, not just in this five-year period, but the decades beyond.

Our plan proposed one of the largest investment programmes across the water industry, and one of the lowest bill rises for customers. It included plans for developing two new reservoirs, completing the first strategic water mains interconnector of its kind, offering a new level of resilience against future drought, delivering hundreds of acres of nature-based projects and providing our customers with our largest ever package of support.

However, having factored in nearly £1billion of efficiency savings, our PR24 plan was already stretching and to secure this unprecedented scale of investment, it requires a viable sector, set up for the long term. Unfortunately the current settlement does not allow us to deliver the long term investment needed in infrastructure or allow us to maintain our existing network to the level we believe is necessary for future resilience.

We do not take this decision lightly, but with this in mind, we need to make use of the next step in the regulatory process and ask the CMA to reconsider whether the right balance has been struck.

You can read our full announcement here.

FAQs

Why is Anglian Water going to the Competition Markets Authority?

Like other water and sewerage companies in the UK, we have been reviewing the Final Determination of our business plan for the next five years from Ofwat in great detail.

We are taking the decision to the CMA because we don’t feel that it provides us with the right balance of risk and puts long-term resilience and long-term investment at risk. By taking the decision to the CMA, we are asking them to consider if the right balance has been struck.

Our plan for AMP8 was our largest ever business plan, worth £11bn, and was designed to be ambitious. It included plans for developing two new reservoirs, completing the first strategic water interconnector of its kind to ensure a new level of resilience against future drought, as well as hundreds of acres of nature-based projects and our largest ever package of customer support.

We want to make sure that we can deliver on this, and that’s why we are going to the CMA.

Will this impact my bills and services?

The CMA process will not have an impact to the services we offer to our customers.

Currently, at 29%, our proposed bill increase over the next five years was one of the lowest in the water industry, despite having one of the largest investment plans.

It is too early to say what a redetermination from the CMA will mean for customer bills beyond 2025, but it’s likely bills will still remain much less than your other household bills. Your water bill covers much more than just the cost of cleaning the water you use and the wastewater we take away. It goes towards protecting and enhancing the environment, as well as making sure there is enough water for everyone, both today, tomorrow and far into the future. On average, households pay £1.72 per day. You can learn more about this on our website if you search bill breakdown.

We know that any increase in bills is never welcome, we’re offering our largest ever package of support for hundreds of thousands of customers in difficult circumstances, or who might be struggling to pay, including for the first time, a discounted tariff for those with certain medical needs, paid for by shareholders.

What are the next steps in the process?

Delivering for our customers is still our priority, and while we go through the redetermination process we will still be continuing with the work laid out in the first year of our plan.

The CMA will take a fresh look at all the plans and documents we submitted to Ofwat as part of the price review process. This work takes roughly between six months to a year. At the end the CMA will decide whether the right balance has been struck within our plan or whether it should change from the settlement given to us by Ofwat.

Referring to the CMA is as standard part of the regulatory process and something we have successfully done in the past to secure a better outcome for customers and the region.

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