TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

2. INTRODUCTION 4
2.1 Definitions 5
2.2 Methodology 6
2.3 Abbreviations 6
2.4 Market Positioning 7
2.5 UK Economy 8
2.6 Market Factors 10

3. INDUSTRY STRUCTURE 13
3.1 Chapter Summary 14
3.2 England & Wales 14
3.2.1 Water and Sewerage Companies 14
3.2.2 Water Service Companies 17
3.3 Scotland 19
3.4 Northern Ireland 20

4. CAPITAL EXPENDITURE 23
4.1 Chapter Summary 24
4.2 Capital Expenditure, 2005/06-2009/10 25
4.2.1 Process Plant Expenditure, 2005/06-2009/10 31
4.2.2 Civil Engineering Expenditure, 2005/06-2009/10 32
4.2.3 Building Expenditure, 2005/06-2009/10 32
4.2.4 Other Expenditure, 2005/06-2009/10 33
4.3 Water Related Capital Expenditure in England & Wales 33
4.3.1 Water Resources Expenditure 35
4.3.2 Water Treatment Expenditure 36
4.3.3 Water Distribution Expenditure 38
4.3.4 General Water Expenditure 43
4.4 Scotland 44
4.5 Northern Ireland 46

5. COMPANY ANALYSIS 48
5.1 Chapter Summary 49
5.2 Water Holding Companies 49
5.2.1 Anglian Water Services 50
5.2.2 United Utilities Water 53
5.2.3 Northumbrian Water 55
5.2.4 Severn Trent Water 58
5.2.5 South West Water 61
5.2.6 Southern Water Services 64
5.2.7 Thames Water Utilities 67
5.2.8 Dŵr Cymru Cyfyngedig 70
5.2.9 Wessex Water 73
5.2.10 Yorkshire Water Services 76
5.3 Statutory Water Companies 79

6. MARKET FORECAST 82
6.1 Chapter Summary 83
6.2 Future Expenditure 84
6.3 Forecast Capital Expenditure, 2010/11-2014/15 88
6.4 Forecast Process Plant Expenditure, 2010/11-2014/15 92
6.5 Forecast Civil Engineering Expenditure, 2010/11-2014/15 93
6.6 Forecast Building Expenditure, 2010/11-2014/15 94
6.7 Forecast Other Expenditure, 2010/11-2014/15 95

7. FURTHER SOURCES & CONTACTS 96
7.1 Trade Associations & Regulatory Bodies 97
7.2 Trade Magazines 98
7.3 Trade Exhibitions 100

LIST OF TABLES

1: Details of the Water and Sewerage Companies, as at March 2011 15
2: Turnover from Water Services in England and Wales, by Type, 2005/06-2009/10 16
3: Water Customers of the Water and Sewerage Companies, Household and
Non-Household, 2009/10 16
4: Sewerage Customers of the Water and Sewerage Companies, Household and Non-Household, 2009/10 17
5: Details of the Water Only Companies, as at March 2011 18
6: Customers of Water Only Companies, Household and Non-Household, 2009/10 19
7: Total Capital Expenditure by Water and Sewerage Companies in England & Wales,
2005- 2010 25
8: Total Capital Expenditure by Water Only Companies in England & Wales, 2005- 2010 26
9: UK Capital Expenditure on Water and Sewerage Services, 2005/06-2009/10 27
10: UK Capital Expenditure on Water and Sewerage Services, 2005/04-2009/10 27
11: Analysis of Water Related Capital Expenditure, by Water and Sewerage Companies
in England and Wales, 2005/06-2009/10 28
12: Analysis of Water Capital Expenditure by Water Only Companies, by Type, 2009/10 30
13: Analysis of Water Capital Expenditure, by Water and Sewerage Companies, by
Purpose, 2009/10 31
14: UK Capital and Process Plant Expenditure by the Water and Sewerage Industry,
2005/06-2009/10 32
15: UK Capital and Civil Engineering Expenditure by the Water and Sewerage Industry, 2005/06-2009/10 32
16: UK Capital and Building Expenditure by the Water and Sewerage Industry,
2005/06-2009/10 33
17: UK Capital and Other Expenditure by the Water and Sewerage Industry,
2005/06-2009/10 33
18: Analysis of Water Capital Expenditure in England and Wales, by Water and Sewerage Companies, by Type, 2005/06-2009/10 34
19: Analysis of Water Capital Expenditure in England and Wales, by Water Only
Companies, by Type, 2005/06-2009/10 34
20: Analysis of Water Resources Capital Expenditure, by Water and Sewerage
Companies, 2005/06-2009/10 35
21: Analysis of Water Resources Capital Expenditure, by Water Only Companies,
2005/06-2009/10 36
22: Analysis of Water Treatment Capital Expenditure, by Water and Sewerage
Companies, 2005/06-2009/10 37
23: Analysis of Water Treatment Capital Expenditure, by Water Only Companies,
2005/06-2009/10 38
24: Analysis of Water Distribution Capital Expenditure, by Water and Sewerage
Companies, 2005/06-2009/10 39
25: Analysis of Water Distribution Capital Expenditure, by Water Only Companies,
2005/06-2009/10 40
26: Total Industry Leakage, 2005/06-2009/10 40
27: Water Leakage Levels, by Company, 2005/06- 2009/10 41
28: Analysis of Infrastructure Renewals Expenditure, 2005/06-2009/10 42
29: Analysis of Mains Renewal and Relining Activity, by Water Companies, 2009/10 43
30: Analysis of General Water Capital Expenditure, by Water and Sewerage
Companies, 2005/06-2009/10 43
31: Analysis of General Water Capital Expenditure, by Water Only Companies,
2005/06-2009/10 44
32: Analysis of Scottish Water Capital Expenditure on Water and Sewerage Services,
2005/06-2009/10 46
33: Water Related Capital Expenditure in Northern Ireland, by Type, 2002/03-2006/07 47
34: Financial Analysis of Anglian Water Services, 2006-2010 50
35: Key Financial Ratios for Anglian Water Services, 2006-2010 51
36: Anglian Water, Infrastructure Details, 2005/06-2009/10 51
37: Total Capital Expenditure of Anglian Water Services, 2005/06-2009/10 52
38: Analysis of Water Capital Expenditure by Anglian Water Services, by Type,
2005/06-2009/10 52
39: Financial Analysis of United Utilities Water, 2006-2010 53
40: Key Financial Ratios for United Utilities Water, 2006-2010 53
41: United Utilities, Infrastructure Details, 2005/06-2009/10 54
42: Total Capital Expenditure of United Utilities, 2005/06-2009/10 55
43: Analysis of Water Capital Expenditure by United Utilities, by Type, 2005/06-2009/10 55
44: Financial Analysis of Northumbrian Water, 2006-2010 56
45: Key Financial Ratios for Northumbrian Water, 2006-2010 56
46: Northumbrian Water, Infrastructure Details, 2005/06-2009/10 57
47: Total Capital Expenditure of Northumbrian Water, 2005/06-2009/10 57
48: Analysis of Water Capital Expenditure by Northumbrian Water, by Type,
2005/06-2009/10 58
49: Financial Analysis of Severn Trent Water, 2006-2010 59
50: Key Financial Ratios for Severn Trent Water, 2006-2010 59
51: Severn Trent Water, Infrastructure Details, 2005/06-2009/10 60
52: Total Capital Expenditure of Severn Trent Water, 2005/06-2009/10 60
53: Analysis of Water Capital Expenditure by Severn Trent Water, by Type,
2005/06-2009/10 61
54: Financial Analysis of South West Water, 2006-2010 62
55: Key Financial Ratios for South West Water, 2006-2010 62
56: South West Water, Infrastructure Details, 2005/06-2009/10 63
57: Total Capital Expenditure of South West Water, 2005/06-2009/10 63
58: Analysis of Water Capital Expenditure by South West Water, by Type,
2005/06-2009/10 64
59: Financial Analysis of Southern Water Services, 2006-2010 65
60: Key Financial Ratios for Southern Water Services, 2006-2010 65
61: Southern Water, Infrastructure Details, 2005/06-2009/10 66
62: Total Capital Expenditure of Southern Water Services, 2005/06-2009/10 66
63: Analysis of Water Capital Expenditure by Southern Water Services, by Type,
2005/06-2009/10 67
64: Financial Analysis of Thames Water Utilities, 2005-2010 68
65: Key Financial Ratios for Thames Water Utilities, 2005-2010 68
66: Thames Water Utilities, Infrastructure Details, 2005/06-2009/10 69
67: Total Capital Expenditure of Thames Water Utilities, 2005/06-2009/10 69
68: Analysis of Water Capital Expenditure by Thames Water Utilities, by Type,
2005/06-2009/10 70
69: Financial Analysis of Dŵr Cymru Cyfyngedig, 2006-2010 71
70: Key Financial Ratios for Dŵr Cymru Cyfyngedig, 2006-2010 71
71: Dŵr Cymru Cyfyngedig, Infrastructure Details, 2005/06-2009/10 72
72: Total Capital Expenditure of Dŵr Cymru Cyfyngedig, 2005/06-2009/10 72
73: Analysis of Water Capital Expenditure by Dŵr Cymru Cyfyngedig, by Type,
2005/06-2009/10 73
74: Financial Analysis of Wessex Water, 2006-2010 74
75: Key Financial Ratios for Wessex Water, 2006-2010 74
76: Wessex Water, Infrastructure Details, 2005/06-2009/10 75
77: Total Capital Expenditure of Wessex Water, 2005/06-2009/10 75
78: Analysis of Water Capital Expenditure by Wessex Water, by Type, 2005/06-2009/10 76
79: Financial Analysis of Yorkshire Water Services, 2006-2010 77
80: Key Financial Ratios for Yorkshire Water Services, 2006-2010 77
81: Yorkshire Water, Infrastructure Details, 2005/06-2009/10 78
82: Total Capital Expenditure of Yorkshire Water Services, 2005/06-2009/10 78
83: Analysis of Water Capital Expenditure by Yorkshire Water Services, by Type,
2005/06-2009/10 79
84: Analysis of Water Capital Expenditure by the Water Supply Companies, by Type,
2009/10 80
85: Water Capital Expenditure by the Water Supply Companies, by Company, 2009/10 80
86: Annual Price Limits for 2010/2011 to 2014/2015, by Water and Sewerage Companies 84
87: Annual Price Limits for 2010/2011 to 2014/2015, by Water Only Companies 85
88: Average Expected Household Bill, by Water and Sewerage Companies, 2004/2005
and 2009/2010 85
89: Average Expected Household Water Bill, by Water Only Companies, 2009/2010
and 2014/2015 86
90: UK Population, by Region, 2011-2025 87
91: Deadline for Implementation of Aspects of the Water Framework Directive 88
92: Total Proposed Capital Expenditure by Water and Sewerage Companies in
England & Wales, 2010- 2015 89
93: Forecast UK Capital Expenditure on the Water and Sewerage Industry,
2010/11-2014/15 89
94: Estimated Number of Connected (billed) Dwellings in Scotland, 2009/10-2013/14 90
95: Forecast Capital Expenditure for Scottish Water, 2010/2011-2014/2015 91
96: Forecast Investment Programme for Northern Ireland Water, 2010/2011-2014/2015 92
97: Forecast UK Capital and Process Plant Expenditure by the Water and Sewerage
Industry, 2010/11-2014/15 92
98: UK Capital and Civil Engineering Expenditure by the Water and Sewerage Industry, 2010/11-2014/15 94
99: Forecast UK Capital and Building Expenditure by the Water and Sewerage Industry, 2010/11-2014/15 95
100: Forecast UK Capital and Other Expenditure by the Water Industry, 2010/11-2014/15 95