2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
concentrated on upgrading specific STWs and to reduce further a number of storm water discharges.
In 1999, 11 out of 34 designated beaches failed the mandatory criteria and this fell to 6 in 2000.
Bathing water compliance 2001 2003 2004
Guideline 4 4 7
Mandatory 26 32 29
Fail 4 1 1
UU Industrial: Industrial water outsourcing
UU acquired Hyder Industrial Solutions (HIS) from Hyder after the latter company’s take-over in 2000.
The company provides water and wastewater provision and treatment services through the
development of dedicated facilities.
Year 2001-02 2003-04
Customers N/A 400
On-site customers N/A 21
Wastes treated (million m 3 ) 38 40
Revenues (£ million) 12 20
Park Environmental in Newport, South Wales and Ellesmere Port was acquired for £8 million in 2004;
this liquid waste treatment facility has revenues of approximately £10 million. The Newport facility is
being expanded to handle 150,000 tonnes of liquid wastes per annum. Other UU Industrial liquid
waste facilities at Bridgend and Ellesmere Port can handle 47,000 t/pa and 100,000 t/pa respetively.
13 million tonnes of liquid waste were treated in 2004-05.
Scotland
1998 Fort William 28 year PFI BOT 14,000 sewage treatment
1998 Inverness 28 year PFI BOT 66,000 sewage treatment
1999 Tay 28 year PFI BOT 330,000 sewage treatment
2001 Moray Coast 30 year PFI BOT 70,000 sewage treatment
These contracts were awarded by the North of Scotland Water Authority to Catchment Ltd, with UU
responsible for the operation of the sewage treatment works through Caledonian Water. The £45
million Highland scheme has two facilities, at Fort William and Inverness, which are both fully
operational. The Tay scheme (33% held by UU) is for a single site serving Dundee and Angus and
entered service in March 2002 at a total cost of £150 million. The £60 million scheme for the Moray
Firth involves three sewage treatment works and 25km of sewerage for the Moray Firth.
England, Wales and Scotland – Outsourcing contracts
During 2004-05, UU Contract Solutions (UUCS) gained £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.
The four year operations contract with Glas Cymru for Dwr Cymru Welsh Water’s (DCWW) operations
started in April 2001. This contract was originally worth £450 million and was expanded to £600
million, covering both water and sewerage activities. To date, variable costs have been reduced by
20%. This was replaced with a 15 year, £1.5 billion contract starting from April 2005, with five yearly
reviews. In 2002, UUCS also gained a £15 million water meter installation and replacement contract.
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
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Pinsent Masons Water Yearbook 2005 – 2006