Not-for-profit utility Dŵr Cymru Welsh Water has today confirmed that its average household bill for 2014/15 will increase below the rate of inflation for the fifth consecutive year.

This follows the publication of Dŵr Cymru’s latest half-year financial report which shows that the non-shareholder company invested £178 million in capital projects and essential infrastructure in the six months to September 2013 – £25 million more than the same period last year.

The half year report shows strong overall performance for the six months to September 2013.

Welsh Water also confirmed that a further £500 million will be invested over the next 18 months, supporting around 3,500 jobs through local companies and suppliers in addition to the 2,500 staff employed directly by the company. Welsh Water said the level of investment had been made possible due to the company reducing its own operating costs by 5% since 2010.

Comenting on the results, Glas Cymru Chairman, Bob Ayling, said:

“As a non-shareholder company where all gains go to the customer, we believe that the results for the first six months of this financial year show that the Glas Cymru model continues to work well for our customers. We are more than conscious that the cost of living is increasing for our customers and we are therefore very pleased to be able to keep our bill increase for 2014 below the rate of inflation for the fifth consecutive year. We have also made good progress in delivering against our targets on water quality, safeguarding the environment and customer service.”

Chief Executive Chris Jones added that as Welsh Water had no shareholders the company was returning additional benefits to customers – including reduced bills, social tariffs, absorbing the costs of operating formerly private sewers and accelerated investment - to a value of £140 million in the five years to 2015.

Key investments over the first six months of this financial year include:

• new water treatment works processes across North Wales at Llyn Conwy (£15m), Alwen (£10m), Alaw (£17m), Cefni (£14.5m) and Dolbenmaen (£28m) to protect the quality of drinking water
• a new £9 million service reservoir at Coed Dolwyd which will give 70,000 customers in the Colwyn Bay and Llandudno area additional security of supply
• £9 million upgrade to Bont-goch water treatment works in Ceredigion that serves around 70,000 customers
• £4m upgrade to improve Kingstone and Madley wastewater treatment works in Herefordshire, protecting the local environment
• £2million RainScape scheme in Llanelli designed to help prevent flooding by reducing the surface water runoff currently entering the sewerage network
• £2million investment on improving 13km of iron water mains in poor conditions in Newport and Hereford to tackle discolouration of tap water.

During the period Welsh Water also generated a record 24GWh of renewable electricity (2012: 18GWh) from a mixture of anaerobic digestion, hydro and solar panels. All three technologies generated record amounts of energy and met 11% of the firm’s needs (2012: 8%).

The latest half year results follow a recently published independent report from Cardiff Business School showing that Welsh Water contributes more than £1 billion a year to the Welsh economy, supporting more than 6,000 jobs across Wales.

As a ‘not-for-profit’ water and sewerage company, Dŵr Cymru Welsh Water’s business model is unique in the water industry. It has no shareholders which means that any financial surpluses are reinvested in the business for the benefit of customers.