Dyr Cymru Welsh Water

Parent company:         Glas Cymru

Regulated utility:         Dwr Cymru Welsh Water Ltd

Ownership:                   Not for profit organisation

Welsh Water's parent company Glas Cymru is an unusual water company in that it is the only not for profit organisation in the water industry. This means it has no shareholders and profits are either reinvested in the business or returned to customers.

In an imaginative move Glas Cymru was formed in 2000 to buy Welsh Water from the struggling Western Power Distribution business. Alongside this a debt financing package was established and the business refocused entirely on water and waste water treatment.

Welsh Water has just undertaken the biggest re-structuring since it was bought by Glas Cymru twelve years ago as it terminated the operating contracts with United Utilities and Kelda and transferred staff back in-house. As a consequence its number of employees has jumped from only 170 to about 2000. It now has a legacy of issues from the long period of contracting out operations to overcome.

Welsh Water is unique among the water companies in having copious supplies of raw water due to its geography and high rainfall in Wales. Hence water leakage is of low concern but waste water treatment and in particular coastal discharges are an important issue. Welsh Water has successfully reduced customer's water bills with its unique annual customer dividend.

Welsh Water faces some tough challenges as it seeks to reduce its operating costs by 20% and improve operational performance while rebuilding 22 treatment works and investing £1bn over the next three years.