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Press Release: UK Potable Water Business Development Report

Released: March 2011

After researching the UK potable water business development and the UK sewerage business development, and taking into account various other factors the following conclusions can be drawn from MBD's report:

Market Review 2006-2010:

In 2008/09, capital expenditure on water and sewerage services declined by a moderate 2%, which was followed by a stronger 13% decline in 2009/10, taking spending to £4891 million. This is in contrast to strong growth of 17% and 16% recorded in 2006/07 and 2007/08 respectively. The stronger decline recorded in 2009/10 is believed to be partly due to the latest price control review period coming to an end.

In 2009/10, UK capital expenditure on water services declined by 12% to £2429.7 million. This follows a more moderate decline of 3% recorded in the previous years. Prior to that, expenditure rose by a significant 43% between 2005/06 and 2007/08. In the sewerage sector, capital investment declined by 14% to £2460.9 million in 2009/10. However compared with 2005/06, this still represents an overall increase of 9%.

Market Forecast 2011-2015:

MBD believe total capital expenditure in the water and sewerage industry will fluctuate between 2010/11 and 2014/15. Capital expenditure is expected to increase by a strong 12% and 10% in 2010/11 and 2011/12 respectively, reflecting the start of the new price control period in April 2010. In 2014/15, capital expenditure by water & sewerage companies is projected to reach £5487 million, equivalent to growth of 12% in real terms compared with 2009/10.

Capital expenditure by Scottish Water is expected to be reduced in the short-term, at a strong 23% in 2010/11 to £499 million. In the following two years capital investment is expected to remain at a similar level, oscillating at around £500 million. In 2013/14, capital expenditure is anticipated to be reduced by 4%, although this is forecast to be offset by a 6% increase in 2014/15, taking capital investment to £512 million

Note to Editors:

MBD specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

Click here for full details of the UK Potable Water Business Research Report and here for full details of the UK Sewerage Business Research Report

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