Dŵr Cymru Welsh Water invested a record £629 million in its network, a 31% year-on-year increase to maintain and improve its assets, according to the company’s financial results for 2024-25.
The company said the largest capital investment programme in its history drove improvements and ensured that it was in a strong position to deliver on its largest ever investment programme and improved service targets required for the new 2025 to 2030 investment cycle.
These projects include replacing the treatment process at Cardigan Wastewater Treatment Works, improving sites at Eign and Rotherwas in Hereford, upgrading the wastewater network within Usk, increasing capacity at Bangor Beach Road wastewater pumping station and investment to renew and upgrade the water network at Trap and Llandyfan in Carmarthenshire.
Welsh Water also said it continues to be amongst the sector’s top performing companies for customer trust and satisfaction, which it says is a symbol of the dedication of its workers across Wales and Herefordshire. The company also saw improvements on leakage, internal and external flooding incidents and its performance against the Drinking Water Inspectorate’s Compliance Risk Index.
The company has acknowledged that these improvements will need to be maintained and accelerated as the company seeks to improve its Environmental Performance Assessment rating from 2 stars to 3 stars, move out of Ofwat’s ‘lagging company’ categorisation and respond to the Drinking Water Inspectorate’s Transformation Programme.
During the last twelve months, the company has also continued not only to invest to mitigate the impact of climate change, such as extreme weather, by building the UK’s largest spillway at Llyn Celyn dam in north Wales but it has also had to manage the impact of two of the most difficult operational incidents it has faced in decades. A temporary ‘boil water’ notice was issued in November due to damage caused by Storm Bert to the Tynywaun Water Treatment Works in the Rhondda Valley, and in January, a burst of a strategic water main under the Afon Ddu river caused a supply interruption affecting 40,000 properties in the Conwy area.
Welsh Water’s focus on improving river water quality was reflected with 231km of rivers improved in 2024-25. The company has been working in collaboration with other bodies including Nutrient Management Boards to support improvements in Special Areas of Conservation rivers.
To fund its record investment requirements over the next 5 years , the company confirmed in February that it was necessary to increase the average household bill for 2025-26 by 27%, and acknowledged the increased burden this would put on customers. The company also confirmed that it is providing financial assistance to a record 153,000 customers of its most vulnerable customers who struggle to pay their water bills.
Over the past year, Welsh Water says it has boosted its leadership, enhanced governance, and sharpened its strategic and operational focus to deliver greater clarity, accountability, and momentum. The Board was bolstered with the appointment of four new Glas Cymru Non-executive Directors: Sir James Bevan, Darren James, Darren Pope, and Alison Wilcox. Their skills and expertise are helping to support, challenge and guide the company through the next investment cycle.
Chair of Glas Cymru, Jane Hanson CBE, said:
“The next 12 months will be pivotal for the company as we secure the foundations for the step change in performance that is needed.
“Our AMP8 Business Plan is our most ambitious to date, with total expenditure of £6 billion and £4.2 billion in capital investment. This involves scaling up our supply chain and supporting another 2,000 roles but there is no quick fix — we recognise the scale of the task ahead and that progress will take time. But we are putting the right building blocks in place: strengthening leadership, sharpening our performance focus, investing in critical infrastructure, maintaining strong relationships with stakeholders and embedding a culture of accountability and service.
“With continued commitment and collaboration across the organisation, I am confident we will make meaningful progress towards delivering the improvements our customers, communities and the environment rightly expect.”
Welsh Water Chief Executive, Peter Perry, said:
“As we embark on the new investment period for 2025 to 2030, we know that we need to go further and faster if we are to make the step change in performance needed to meet the evolving needs of our customers, communities and stakeholders.
“We are expending every effort to improve areas of performance, and we have already seen progress in a number of fields over the last year. This includes areas such as leakage where we have reduced leakage over the past 12 months which helps us manage water supplies given that February to April was one of the driest equivalent periods on record. This type of progress is being enabled through clear action plans aimed to make the most of the capability of our people, technology and the increased level of investment in our infrastructure.
“The next 12 months are critical in driving service improvements, along with effectively communicating the benefits of our non-shareholder model. This will help ensure that we play our part in setting the strong foundations needed for the next 25 years of Glas Cymru.”
