ISBN 1-85765-757-8

Executive Summary

Table of Contents

Back to Utilities Index

Normally £311 - Our Price £287.67 - SAVE £23.33

EXECUTIVE SUMMARY

In 1997/1998, the UK demand for water and sewerage services was estimated to be worth £7.21bn and, by 1998/1999, this figure is estimated to be £7.76bn. The volume of water supplied in 1996/1997 was 19,680 megalitres per day.
The market is served by two types of company, water and sewerage companies (WSCs) and by water-only companies (WOCs). In England and Wales, there are ten WSCs and these also supply sewerage services to the WOCs. There are 18 WOCs, a major reduction on the 29 which existed in 1989 at privatisation. In Scotland, there are three water authorities and in Ireland, the Water Service -- all of which are government controlled.
The water industry in England and Wales is highly regulated, prices and investment being subject to proposals made by the Office of Water Services (Ofwat). In 1997/1998, WSCs supplied 89.3 percent of the requirements for water services in England and Wales in value terms.
In recent years, there have been significant changes in ownership of the supply companies. Four WSCs are now part of major groups, with widespread interests often including other utility activities. Two are now owned by major French groups with multinational operations. Recently, one of the WSCs was bought by a US company. In the WOC sector, French companies also own four WOCs and have a stake in others.
As a regulated business of fundamental importance, the water industry is in a strong position. However, there is currently considerable discussion regarding the next 5-year price review, particularly how the proposed £8.5bn quality improvement programme will be phased. Current proposals are that there will be a reduction in prices in 2001, after which there will be a series of price increases. Efficiency targets recently set by Ofwat are also causing concern as to how they are to be met whilst maintaining other criteria, many of them mandatory.
Allowing for the significant price reduction in 2000/2001, the sales of the water industry are estimated to be £7.22bn in 2003/2004. During the 5 years after 2001, total investment could be around £3.5bn a year.

Back to Top

TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

MARKET SECTORS

Table 1: Water Abstractions from all Surface and Groundwaters in England and Wales (megalitres per day), 1992-1996

Market Size

THE TOTAL MARKET

Table 2: UK Water and Sewerage Services by Value (£m), 1994/1995-1997/1998

Table 3: The Supply of Public Water (megalitres per day), 1993/1994-1996/1997

Table 4: Split of Water and Sewerage Companies' Regulated Water and Sewerage Revenue (£m and percent), 1992/1993-1997/1998

Table 5: Capital Investment by Water Utility Companies (£m), 1992/1993-1997/1998

Industry Background

RECENT HISTORY

INDUSTRY REGULATION

EMPLOYMENT

Table 6: The Water and Sewerage Companies in England and Wales, 1999

Table 7: Water-Only Companies in England and Wales, 1999

Table 8: Employment in the Water Industry, 1993-1997

Competitor Analysis

THE WATER AND SEWERAGE COMPANIES

THE UTILITY HOLDING COMPANIES OF THE WSCS

THE WATER-ONLY COMPANIES

WATER PROVIDERS IN SCOTLAND

THE WATER SERVICE IN NORTHERN IRELAND

ADVERTISING AND PROMOTION

Table 9: The Ten Water and Sewerage Companies by Current Cost Turnover (£m), 1993/1994-1997/1998

Table 10: Price Limits for Water and Sewerage Companies ( percent), 1998/1999

Table 11: The Ten Water and Sewerage Companies by Pre-Tax Profits (£m), 1993/1994-1997/1998

Table 12: Capital Investment by the Ten Water and Sewerage Companies (£m), 1993/1994-1997/1998

Table 13: Forecast Capital Expenditure by Water and Sewerage Companies (£m at 1993/1994 prices), 1995/1996-2004/2005

Table 14: Sales of the Ten Utility Holding Companies (£m), 1993/1994-1997/1998

Table 15: Water and Sewerage Companies Sales as a percentage of Their Parents' Sales, 1996/1997-1997/1998

Table 16: Pre-Tax Profits of the Utility Holding Companies (£m), 1993/1994-1997/1998

Table 17: Share of Utility Holding Company's Pre-Tax Profits Generated by its Water and Sewerage Companies ( percent), 1994/1995-1997/1998

Table 18: Sales of Vivendi Group Companies (£m), 1998

Table 19: Total Regulated Sales of the Water-Only Companies (£m), 1993/1994-1997/1998

Table 20: Water-Only Companies by Turnover (£m), 1996/1997 and 1997/1998

Table 21: Annual Price Limits of Water-Only Companies ( percent), 1998/1999

Table 22: Total Capital Expenditure by Water-Only Companies (£m), 1992/1993-1997/1998

Table 23: Capital Expenditure by Water-Only Companies (£m), 1996/1997 and 1997/1998

Table 24: Sales and Capital Expenditure of the Water Providers in Scotland (£m), 1997/1998

Table 25: Water Schemes Identified as Private Finance Initiative Projects (£m)Å, 1998

Table 26: Sales and Capital Expenditure of the Water Services in Northern Ireland (£m), 1993/1994-1997/1998

Table 27: Main Media Advertising Expenditure by Water Companies (£000), 1996-1998

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

PUBLIC WATER SUPPLY

Table 28: Public Water Supply (megalitres per day), 1992/1993-1996/1997

Table 29: Metering of Water in England and Wales ( percent), 1998/1999

Table 30: Leakage from Water and Sewerage Companies and Water-Only Companies, 1993/1994-1997/1998

Table 31: Water Sewerage Companies and Water-Only Companies Leakage Data (megalitres per day), 1995/1996-1997/1998

Table 32: Examples of Water Consumption for Domestic Tasks, 1997

Outside Suppliers to the Industry

THE CONSTRUCTION INDUSTRY

OTHER SUPPLIERS

Table 33: New Construction Work in the Water Industry in Great Britain (£m), 1993-1998

Current Issues

WATER BILLS FOR 1999/2000 TO 2000/2001

WATER BILLS FOR 2004/2005

INVESTMENT

TARIFFS

EFFICIENCY TARGETS

THE WATER INDUSTRY BILL

CORPORATE

Table 34: Possible Initial Reduction in Expected Average Household Bills ( percent) from 1999/2000 to 2000/2001

Table 35: Possible Average Household Bills in 2004-2005 Compared with 1999-2000

Table 36: Possible Changes in the Estimated Industry Average Household Bill (£) from 1999/2000 to 2004/2005

Forecasts

FORECAST OF SALES

FORECAST OF CAPITAL EXPENDITURE

THE DEMAND FOR WATER

Table 37: Forecast Value of Water and Sewerage Services (£m), 1999/2000-2003/2004

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HOPPENSTEDT BONNIER INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

Text © 1999 Key Note

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 2000 www.the-list.co.uk Ariadne

Last updated by Jacob van Eldik 22th January 2000