northumbrian water business plan 2025

Business & Economy

Northumbrian Water – changing lives for the better

North East Times

November 12, 2023

Northumbrian Water has revealed its Business Plan 2025-30, which includes commitments to spending billions of pounds on service improvements and creating and supporting thousands of jobs. Here, Heidi Mottram, the company’s chief executive, explains more.

Last month, Northumbrian Water unveiled its ambitious vision for the future, with the submission of its Business Plan 2025-30.

And this Business Plan, which outlines the outcomes it aims to deliver, and how it will deliver them, is the company’s boldest plan yet.

In fact, it includes the largest investment programme for 30 years and a continued commitment to supporting its local communities.  

Here in the North East, a whopping £4.5 billion will be invested across the five years, to help Northumbrian Water prepare for the future and tackle the challenges of extreme weather and climate change.  

This figure will help to create 3000 jobs a year across the business, and together with the company’s pledge to continue spending at least 60p of every £1 with suppliers in the region, it is expecting to add around £5.7 billion to the local economy.  

Around £50 million will be set aside to repair and replace the ageing network of water pipes and treatment works, as well as £127 million to protect the network from power failures and flooding as it adapts to climate change.

Heidi Mottram, chief executive, says: “As one of the largest businesses in the North East, and in keeping with our commitment to our communities, we believe it’s important to maximise the positive impact of our spending and change lives for the better.

“We know we’re facing tough challenges ahead, so we’ll be investing in state-of-the-art technology and infrastructure, to make sure we’re as best prepared for the future as we can be, and I’m proud that we’ll continue to ensure that 60p in every £1 we spend is spent locally.

“This is our most ambitious plan yet, which will deliver major service improvements for our customers, and we remain dedicated to creating a brighter future for the North East.”  

A greener future

Northumbrian Water strives to provide an unrivalled customer service, an approach which has already seen it achieve the top spot in the industry for customer service – a spot that it intends to keep.

So, it’s no surprise that customers have been part of extensive consultation and surveys, to help gather insight into what people value the most and help shape the business’ future plans and proposals.

Feedback has shown it is environmental improvements which top the list of priorities for many, albeit with the caveat that the company must balance this with rising bill costs.

Heidi says: “Water companies have come under fire for polluting rivers and coastal areas.  

“While fully understanding the frustrations, it’s important to recognise that companies find themselves in different positions for a variety of reasons.  

“We have invested heavily and worked hard to further demonstrate our track record for protecting and enhancing the environment, with the North East having some of the highest standards for bathing water quality, the cleanest rivers and lowest levels of pollution.  

“Our care and respect for our natural environment goes far beyond any regulatory requirements, and our plan will completely eliminate serious pollution, preventing sewage from entering rivers, waterways and seas.”

However, with these new investments to support the environment comes the need for the company to increase water bills.  

While an increase in bills is never welcome, the money will be used to increase the capacity of the sewer network, help the environment and mean a secure water supply for the future, even in the face of climate change.

Northumbrian Water customers will still pay the lowest water and wastewater bills in England, with the company planning to increase the support available for those struggling to pay their bills to more than £100 million, and doubling the number of households on social tariffs to 193,000.

As part of its promise to eliminate water poverty, no customer will ever need to spend more than five per cent of their household income on their water bill, and anyone who is worried about falling into debt is encouraged to get in touch by visiting www.nwl.co.uk/bill-help

With the need to stay at the forefront of technology essential to deliver efficient and sustainable water services, innovation is a driving factor in Northumbrian Water’s Business Plan submission.

Cutting-edge solutions will help with other initiatives, such as improving drinking water quality and a ten per cent reduction in leakage, lowered risk of disrupted services to ensure water supply is reliable and consistent in the future, and less homes impacted by external flooding.

In a nutshell, the plan is less pollution. Less flooding. Less interruptions. More innovation. More support.

Heidi adds: “Our Business Plan for 2025-30 lays out ambitious goals for upgrading infrastructure, enhancing sustainability and continuing to raise the bar on service quality.  

“We aim to emerge as an even more customer-focused, environmentally-conscious industry leader.  

“There are certainly challenges, but they present opportunities to create lasting positive change.”

Ofwat will review the plan and, in May/June 2024, will give its draft determination to calculate the company’s price controls.  

In December 2024, Northumbrian Water will receive its final determination, where prices will be set for 2025-30.

www.nwl.co.uk

@nwater_care

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Northumbrian water announces largest ever package of framework agreements.

Seven new key partners have been brought in to underpin delivery of Northumbrian Water’s AMP8 investment and beyond across its operating areas in the North-east, Essex and Suffolk.

The new partners will provide design and construction services within the water company’s frameworks, joining the five companies appointed at the start of 2023, as the company builds towards its £3.6bn AMP8 workload.

Together with Northumbrian Water, the 12 partners form the Living Water Enterprise (LWE), which lies at the heart of the company’s plan for transformational investment and change.

The LWE is an industry-leading collaborative partnership, the innovative vehicle developed to deliver large scale construction programmes in AMP8 and beyond.

The seven new partners are Esh-Stantec, Avove Limited, Farrans Construction, Costain, Mott MacDonald Bentley (MMB), BAM Nuttall and MWH Treatment.

While positions have been awarded on specific frameworks focusing on treatment and infrastructure, the flexible nature of the LWE means the partners will be available to work across the complete programme. 

This will ensure the best resources are used for each project.

The awards are for up to a 12-year period, starting immediately.

In February 2023, the water company made the first five appointments: new technical partners, Stantec and Jacobs, as well as lead commercial consultants Turner & Townsend, with support from Aqua Consultants and Long O’Donnell Associates. 

This followed a competitive tender process to create eight-year frameworks.

The LWE will play a key role in delivering Northumbrian Water’s upcoming business plan commitments effectively and efficiently. 

This will consider the complete life cycle of assets to ensure smarter spending and risk-based planning for the long-term.

Alongside this total expenditure (TOTEX) approach, the group will challenge existing methods and investment choices, allowing for a greater focus on alternative options, including the potential to reduce carbon through nature-based solutions to water and wastewater treatment.

Monisha Gower, assets director at Northumbrian Water Group, said: “The market has never been so competitive, when it comes to adding the best partners and people to our team in the run-up to AMP8. 

“We have had to be agile and move fast, employing innovation throughout our procurement practices, and it has paid off, building our new stable of partners and creating the capacity we need for the challenges and opportunities that lie ahead.

“Already this year, we have worked with those previously-appointed partners to start the important work of creating a strong culture, centred around collaboration, innovation, safety and wellbeing, all with a clear focus on solutions that work for customers and the environment.

“We have brought on board some of the most capable and innovative partners in our sector, each of whom will bring their energy and passion with them for the journey ahead. 

“These partnerships aren’t just going to build more resilient services for our customers, they will build reputations and careers along the way.

“The level of integration that we will build with all of our partners requires a lot of work, and we are excited to get started.”

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