Dyc Cymru Welsh Water

Parent company: Glas Cymru

Regulated utility: Dwr Cymru Welsh Water Ltd

Welsh Water is an unusual water company in that it is the only not for profit organisation in the water industry. It has contracted out virtually all of its activities to other companies.

Dyr Cymru/Welsh Water is wholly owned by Glas Cymru, the not for profit organisation formed to buy out Welsh Water from Western Power Distribution.

After privatisation Welsh Water decided to diversify in to a wide range of businesses, before following a similar route to North West Water in acquiring an electricity company Swalec and changing its names to Hyder. Unfortunately it bought Swalec at too high a price and got into financial difficulties.

The business was then bought by Western Power Distribution. However they soon decided that the water business did not fit with their ambitions and put the business up for sale again.

In an imaginative move a new organisation Glas Cymru was formed to buy the water business. Alongside this a debt financing package was established and the business refocused entirely on water and waste water treatment. Companies such as Hyder Consulting - part of the old Hyder Group - were sold separately.

The majority of operations previously conducted by Welsh Water have been contracted out. United Utilities now provide the bulk of the day-to-day water and sewage treatment operations and most site operations staff have transferred to United Utilities. Shames Water provides customer services.

Responsibility for delivering the £1,175 million AMP3 capital programme has been delegated to twelve partner organisations, formed in 2000. So far these partnerships are delivering the programme on time and below budget enabling savings to be realised. As a consequence Glas Cymru has been able to announce additional capital investment of £41 million.

Welsh Water is unique among the water companies in having copious supplies of raw water due to its geographic location primarily serving Wales. Hence water leakage is of low concern but waste water treatment and in particular coastal discharges are an important issue. Here it has taken an industry lead with its Green Seas initiative where the company strives to work in partnership with other interested groups to achieve environmental improvement.

The latest results reflect the second year since becoming a not for p[rofit company. The results show the organisation is outperforming in both operational and financial area. Net debt is being reduced and a small rebate of £9 was given to customers. The level of service rating by OFWAT has also improved from 7th to 3rd,

There are non! Glas Cymru is only concerned with water and waste water treatment. It also has remarkably few employee's - about 150 - as the remainder have been transferred to the various outsourcing partners.

Web site: www.dwrcymru.com