2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 2: COUNTRY ANALYSIS
Private sector company operations (Please see the relevant company entry for details)
Company Parent company (country)
Population served
Water Sewerage Total
Anglian Water AWG (UK) 4,075,000 5,700,000 5,792,000
Dŵr Cymru Glas Cymru (UK) 2,788,000 3,043,000 3,043,000
Northumbrian Water Northumbrian Water (UK) 4,185,000 2,547,000 5,406,000
United Utilities United Utilities (UK) 6,840,000 7,230,000 7,230,000
Severn Trent Water Severn Trent (UK) 7,280,000 8,280,000 8,280,000
Southern Water South Downs (UK) 2,200,000 4,170,000 4,170,000
South West Water Pennon Group (UK) 1,516,000 1,394,000 1,516,000
Thames Water RWE (Germany) 7,360,000 12,400,000 12,400,000
Wessex Water YTL Holdings (Malaysia) 1,162,000 2,397,000 2,397,000
Yorkshire Water Kelda Group (UK) 5,325,000 5,093,000 5,258,000
Bournemouth Biwater Group (UK) 424,000 0 424,000
Bristol Water Bristol Water Holdings (UK) 1,066,000 0 1,066,000
Cambridge Water CKI (China) 290,000 0 290,000
Cholderton Water Cholderton Water (UK) 3,000 0 3,000
Dee Valley Dee Valley Group (UK) 258,000 0 258,000
Veolia Water UK VE (France) 3,310,000 0 3,310,000
Mid Kent Water Westpac (Australia) 569,000 0 569,000
East Surrey East Surrey Holdings (UK) 473,000 0 473,000
Portsmouth Water South Downs (UK) 655,000 0 655,000
South East Water Macquarie (Australia) 1,500,000 0 1,500,000
South Staffordshire First Islamic Bank (Bahrain) 1,233,000 0 1,233,000
Earth Tech Tyco International (USA) 700,000 63,000 763,000
The UK remains a pointer for the sector’s future development
The complex nature of the relationship between the private sector and the various water entities in
England & Wales, Scotland and Northern Ireland means that the UK is something of a testing bed for
the private sector globally. Three new (or indeed secondary) markets have emerged over the past five
years:
New markets [1] Outsourcing activities
In the run up to the 1999 Periodic Review, the idea of a Water Plc outsourcing its core activities was
not a pressing issue. By the time the 2004 Periodic review had been completed, it was a fact of life in
the sector; either as a company outsourcing its services to others or having its services outsourced.
While much of the running has been taken up by companies such as Costain and Halcrow, UU,
Thames, Wessex and Severn Trent amongst others, have all sought to enter this market. To date, UU
has made the most progress, securing £3.3 billion in utility related contracts across the UK during
2004-05 and revenues of at least £650 million per annum in the medium term.
United Utilities water outsourcing contracts
Year Client Contract Total value Duration
2001 Welsh Water Operations £450 million 4 years
2003 Scottish Water Capex management (JV) £1,100 million 5 years
2004 Welsh Water Operations £1,500 million 15 years
2005 Southern Water Capex management (JV) £750 million 5 years
The Southern Water contract is worth £300 million to UU and covers 250 water and wastewater
projects, while UU will be involved in managing water provision across Wales and sewage treatment in
North Wales. UU is now involved in managing contracts covering 35% of the UK water sector’s asset
base and is involved in 60% of the 9% of the utilities market in the UK that has been outsourced to
date. In the case of Costain, this market now accounts for the majority of its revenues.
New Markets [2] Repackaging debt
Companies have been refinancing existing and new debt and are looking at more creative and
efficient ways to secure funding for the current capital programme.
209 Pinsent Masons Water Yearbook 2005 – 2006