Market reports, business information and market research from Midnight Croquet. Key Note The Water Industry Market Report.

About market research company Midnight Croquet and our market report services

Read about how Key Note create their market reports

KEY NOTE The Water Industry Market Report : June 2004

CLICK

TO BUY

This report covers: water industry, metered supplies,water supply, sewerage services, water leakage,infrastructure expansion, extreme weather conditions, Water Act 2003, EC Water Framework Directive, water and waste water in Scotland, water services in Northern Ireland,

Companies covered include: British Water, EUREAU, International Water Association, Society of British Water and Wastewater Industries, UK Water Industry Research, Water UK, WRC, Anglian Water Services, DWR Cymru Cyfyngedy Welsh Water, Northumbrian Water, Severn Trent Water, Southern Water, South West Water, Thames Water Utilities, United Utilities Water, Wessex Water Services, Yorkshire Water Services, Scottish Water

EXECUTIVE SUMMARY

This Key Note Market Report analyses the UK water industry in terms of two specific areas: water supply and sewerage services. In 2003, the amount of water in the public water supply in England and Wales was 15,810 megalitres per day, compared with 15,783 megalitres per day in 2002. In 2003, the regulated water industry in England and Wales produced a regulated turnover of £6.63bn, a growth of 0.7% from 2002.

The value of the water industry is almost equally divided between water supply and sewerage services. Services are provided by two types of company, those providing water and sewerage company services (WSCs) and those providing water-only company services (WOCs). The WSCs dominate the industry and, in 2003, accounted for 91.5% of the total industry regulated turnover in England and Wales.

The water industry in England and Walesis regulated by the Office of Water Services (Ofwat) to ensure that the relevant standards and requirements are maintained and that water companies have the expertise to deliver these requirements. In order to enable companies to agree targets and develop feasible business plans, Ofwat operates through a 5-year periodic review procedure and a new review is soon to be implemented for 2005 to 2010. As a means of ensuring that customers do not face steeply rising charges to finance investment, Ofwat imposes price limits for each year of its periodic review.

Several current issues face the industry and a major one is the outcome of work being carried out by Ofwat for the periodic review for 2005 to 2010, which is due to be published in November 2004. The Water Act 2003 provides the basis for a degree of opening up of the water industry in England and Wales. Consultations are being held in the industry to enable large non-household customers to have a choice of water supplier by autumn 2005, which could see the entrance of new suppliers into the market. During the past 10 years, water leakage has decreased, but in the period from 2001/2002 to 2002/2003 it began to rise again. Water companies have to maintain constant efforts to contain water leakage figures. Financing can be a problem area, due to the cost of funding major capital projects in the context of a price-limited regime.

The industry presents major opportunities for suppliers of a wide range of products and services. If government plans for a major expansion in house-building materialises in England and Wales, there will be a need for refurbishment and expansion of the water industry's infrastructure. In the longer term, there is the possibility of opening up more of the market.

TABLE OF CONTENTS

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Table 1: Actual Water Abstractions from all Surface and Groundwater Sources in England and Wales by Purpose (megalitres per day), 1997-2001

MARKET TRENDS

Recent Rise in Public Water Supply

Table 2: Metered and Unmetered Supplies of Water Put into the Public Water Supply for England and Wales (megalitres per day), 1992/1993-2002/2003

Metered Supplies

Company Activity

ECONOMIC TRENDS

Population

Table 3: UK Resident Population by Sex (000 and %), Mid-Years 1999-2003

Gross Domestic Product

Table 4: UK Gross Domestic Product at Current and Constant 1995 Prices (£m), 1999-2003p

MARKET POSITION

The UK

Overseas

2. Market Size

THE TOTAL MARKET

Table 5: The Total Water and Sewerage Services Market in England and Wales by Value at Current Prices (£bn), 1999-2003

by market sector

Water Supply

Table 6: The Water Supply Sector in England and Wales by Value at Current Prices (£m), 1999-2003

Sewerage Services

Table 7: The Sewerage Services Sector for England and Wales by Value at Current Prices (£m), 1999-2003

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 8: Number of UK VAT-Based Enterprises Engaged in the Collection, Purification and Distribution of Water by Turnover Sizeband (£000), 2003

EMPLOYMENT

Table 9: Number of UK VAT-Based Local Units Engaged in the Collection, Purification and Distribution of Water by Employment Sizeband (number of employees), 2003

REGIONAL VARIATIONS IN THE MARKETPLACE

Table 10: The Number of Population Receiving Water Services in England and Wales by Region (000), 2002-2003

DISTRIBUTION

HOW ROBUST IS THE MARKET?

LEGISLATION

Water Act 2003

EC Water Framework Directive

Dec-03

Dec-04

Dec-06

Dec-08

Dec-09

Dec-15

KEY TRADE ASSOCIATIONS

British Water

EUREAU

International Water Association

Society of British Water and Wastewater Industries

UK Water Industry Research Ltd

Water UK

WRc PLC

4. Competitor Analysis

THE MARKETPLACE

Table 11: Water and Sewerage Companies in England and Wales by Company and Holding Company, 2004

Table 12: Water-Only Companies in England and Wales by Company and Holding Company, 2004

Table 13: Financial Results for Leading Companies Engaged in Water and Sewerage Services by Value at Current Prices (£m), 2002/2003

MARKET LEADERS

Anglian Water Services Ltd

Company Structure