South West Water has submitted its £2.8 billion AMP8 business plan to Ofwat setting out its proposals to invest £2.8 billion plan between 2025 to 2030 which would support 2,000 new jobs for the region.

South West Water’s licence incorporates the provision of water services for Bournemouth Water and Bristol Water, and the combined water and sewerage undertakings for South West Water. Bristol Water was merged into South West Water in February 2023.

The plan sets out a totex of £4.5 billion, including a total capital investment of £2.8 billion made up of:

• Water £1.3 billion
• Wastewater £1.5 billion

The water company said the £2.8 billion package of capital investments outlined are built around addressing four key challenges as follows:

• Water quality and resilience - In the face of changing weather patterns and a growing population, we are determined to continue to transform how we protect and secure water resources with unrivalled water quality across the region that will last for generations
• Storm overflows and pollutions - By 2030, a full decade ahead of governmental mandates, we pledge to have tackled the use of storm overflows at our bathing and shellfish waters. Our approach blends nature-based and engineering solutions, coupled with comprehensive water monitoring and sampling programme, to rebuild trust in our communities.
• Net zero and environmental gains - By 2030, we're committed to achieving Net Zero, proving our dedication to minimising our impact on the planet. We'll invest in climate-independent water sources, water reuse, and enhanced transfer networks. We'll repurpose brown field sites, build new reservoirs, and amplify our water resources significantly.
• Addressing affordability and delivering for customers - We're tackling monumental industry challenges, and we're delivering on our promises, all rooted in what our customers deem important.

Key deliverables of the plan include:

Storm overflows

By 2030, tackling all storm overflows at bathing beaches, shellfish waters and high spilling sites – 20 years ahead of the government mandated target.

“Green First” approach to investment, working with nature to improve drainage and reduce storm overflows.

Water quality and resilience

Upgrading a third of water treatment works across the region and investing in two new treatment works in Bristol, alongside Bournemouth’s completion of state-of-the-art ceramic new treatment works

Resurrecting plans for the Cheddar 2 reservoir to boost water resources in the Greater South West

Creating a water grid to ensure all strategic reservoirs are connected, ensuring the company can move resources across the region

Reducing leakage levels to less than 10% on its network and less than 4% on customers’ networks.

Net zero and environmental gains

Continue with its ‘Promise to the Planet’ to become Net Zero by 2030 by decarbonising operations, and reducing emissions of Nitrous Oxide and repurposing methane

Recycling more waste and generating enough energy to power 20,000 homes

Expanding our nature recovery programme - extending Upstream Thinking into new catchments, planting 300,000 trees and re-naturalising waterways for wildlife

Transform sludge treatment processes to protect rivers.

Addressing affordability

We recognise that some customers face affordability challenges due to the cost-of-living crisis, so our plan incorporates multiple solutions and extensive assistance.

Delivering our largest ever package of support with over £200 million of affordability measures Expanding the Watershare plus scheme to one in every 10 households

Introducing a range of fair tariffs to help customers use less and save more.

CEO Susan Davy - "we will do more with less"

The company said the plan is underpinned by a robust balance sheet with expectations of gearing remaining within its well-established range of 55-65%.

Susan Davy, CEO of Pennon Group commented:

“We are already tackling challenges head on today, but with more investment in our region we can go further and faster. We recognise that actions speak louder than words. We've listened to our customers, engaged with communities, and are making progress as we put our promises into practice. This plan will create up to 2000 jobs in our communities, as well as opening the door to 1000 apprenticeships and graduates.

“At the same time, we will do more with less, as we drive efficiency and innovation, with a nature first principle, keeping unwelcome bill increases as low as possible. We have tested our plan with thousands of customers, and they are confident this is the right deal for right now.”