Yorkshire Water

Parent company: Kelda Group Ltd

Regulated utility: Yorkshire Water Services Ltd

Ownership: Saltaire Water global infrastructure fund

Like other water companies Yorkshire Water has returned to its roots divesting its american operations and reverting to being primarily a water company. It is the second biggest player in the UK contract operations market.

Its parent company Kelda, was delisted from the London Stock Exchange in 2008 following acquisition by the global infrastructure fund, Saltaire Water. The sale price was £3 billion and the consortium includes HSBC, GIC, Infracapital and Citigroup.

The Yorkshire Water vision is to be "Clearly the best water company in the UK". The company has made a clear commitment to innovation and is taking the lead in introducing a number of new technologies - they are an early adopter. Yorkshire Water have just come through a major reorganisation and as part of this their asset delivery team relocated to Leeds in a combined office with their key partners. Yorkshire Water have been in the top three of Ofwat's Operating Performance Assessment in each year of AMP4.

This last winter has been particularly challenging with the cold weather causing a significant increase in water leakage. Achieving operational excellence is a key target for Yorkshire Water as it impacts on both the customer experience and costs. The investment programme for 2010- 2015 is £1.9bn. It includes a significant increase (15%) in maintenance especially on the water network. The main quality improvements are on waste water with a £355m environmental programme and a further £175m on enhanced service. This is aimed at improving bathing water quality (£115m), meeting the Freshwater Fish Directive (£165m) and on reducing sewer flooding and pollution incidents (£120m). One of the biggest projects is the £56m improvements to Blackburn STW.

Financial data is for regulated utility Yorkshire Water Services Ltd

Data for financial year ended March 2011

	Amount
Turnover	£ 867 million
Operating profit	£ 319 million
Capital Investment	£ 300 million

Data for the regulated UK water business only

	Amount
Area served	13 500 km2
Population -Water -Waste water	4.8 million 4.7 million
Water -Water supplied a day -Length water mains -Water treatment works	1295 Ml 31 900 km 76
Sewerage -Length of sewers -Waste water treatment works -Sludge produced	30 500 km 631 129 000 te's dry

Address

Kelda Group plc
Western House
Halifax Road
Bradford
BD6 2LZ

Tel: 01274 600111

Web site: www.yorkshirewater.co.uk

Non-regulated business

Kelda Services runs non-regulated business in operations which are now entirely focused on contract operations in water and waste water across the UK.

It has been successful as part of the Brey consortia in winning a major long term contract with the MoD. The Bray consortia comprises Yorkshire Water with a 45% stake, AECOM and Halliburton KBR. The contract is the largest PFI deal in the UK and a major Private Public Partnership. The deal involves the transfer of responsibility for water and wastewater assets and their operation at over 1000 MoD sites in the Midlands, Wales and South West. It also manages operations for Scottish Water and Northern Ireland Water. Other non regulated activity includes Loop Customer Management, Safe-Move and KeyLand Developments its property arm.

Web site: www.keldagroup.com

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