PRESS RELEASE BY MBD...

UK POTABLE WATER BUSINESS RESEARCH REPORT

RELEASED: FEBRUARY 2008

After researching the UK potable water business development and taking into account various other factors the following conclusions can be drawn from MBD's report:

MARKET REVIEW 2002/03-2006/07:

In 2006/07, UK capital expenditure on water and sewerage services reached £4963 million, equivalent to strong growth of 17% in the year and of 28% compared with 2002/03. Investment in mains renewal and relining continued to account for the majority of expenditure in water service. Investment in sewerage was also strong because of increased levels of sewer repairs and maintenance on sewage treatment works. Annual growth rates peaked at 13% in 2002/03. However, growth slowed in the next three years due to companies coming towards the end of the 2000-05 quality programme which was due for completion in December 2005. A marginal decline was recorded in 2005/06 reflecting the setting of new price limits in the year which tends to reduce investment.

MARKET FORECAST 2007/08-2011/12:

MBD believe total capital expenditure in the water and sewerage industry will decline during the majority of the five year forecast period ending 2011/12. In the latter year capital expenditure in the UK is anticipated to reach £4566 million (at 2006/07 prices). This is equivalent to an 8% real term decline compared with 2006/07. In the period 2005/06 to 2009/10, capital expenditure in England and Wales is set to total £16.8 billion. Statements by water companies suggest that this investment level must be maintained if not increased in the next price review to ensure infrastructure remains adequate. In both Scotland and Wales, the respective regulating authorities have allowed for significant increases in their capital expenditure. The single most important project is expected to be the Tideway Tunnel with construction expected to start towards the end of the forecast period.

NOTE TO EDITORS:

Market & Business Development Ltd specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

Click here for full details of the UK Potable Water Business Research Report

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