Severn Trent Water outlines plans for 'transformational' £470m investment programme after hiking water bills

Industry regulator Ofwat yesterday gave its support for the company to invest £15 billion in the region during the next five years.

But, in turn, household water bills are set to rise by up to 47 per cent in the Severn Trent region - a move that has come under criticism from campaigners.

The water company has outlined its spending plans, which include splashing £1.7 billion to reduce spills at storm overflows across the region, including £140 million in Shropshire.

Seven Trent Water also said it will spend £80m on the expansion of its Shelton water treatment works in Shrewsbury to boost supplies across the county, and install 119 miles of new water pipes in Shropshire, representing a £46m investment.

The water company is currently advertising for 49 jobs in Shropshire, and said Ofwat's announcement means it can start its multibillion-pound investment "that will secure the region’s water supply and improve river health all while keeping customer bills low and affordable".

Severn Trent Water added that its customers have the second-lowest bills in England.

Severn Trent’s chief financial officer, Helen Miles said: "This news will have a huge positive impact for customers across Shropshire. It will deliver far-reaching benefits for the environment, communities and water supplies right now and for many generations to come.    

"Real progress has already been made and when it comes to reducing spills, we've implemented 116 solutions across Shropshire storm overflows this year alone thanks to £1bn of accelerated investment from our investors to help us to deliver faster.

"Looking ahead, this new investment means that by 2030 we aim to reduce our responsibility for rivers not achieving good ecological status to less than 2 per cent.  This means we’re leading the way in the UK, and we’re totally committed to going further and faster to deliver for our customers."

The water company said their plan is a "major win" for the region's economy, with 7,000 new jobs expected to be created in the company and in its supply chain.

It said roles will be recruited at Severn Trent and in its supply chain that will also support new apprenticeships and skills programmes during the next five years.   

The company is currently recruiting for 49 new jobs in Shropshire as part of a £420 million project to install 119 miles of new water pipes in the county. 

The project is aiming to see leaks reduced, to help customers save water, and ensure fewer supply interruptions.

The water company has also, today, unveiled a water affordability package that will aim to provide financial assistance to around one in six customers.

"We’ve secured these huge investment plans, and have ensured that bills remain the second lowest in England, with one the biggest financial support schemes for anyone who needs it," added Mrs Miles.

"We recognise that any increase can be hard, so to support any customer who needs help with their bill, we’ve launched a new financial support package - supporting around one in six households across our region. If anybody needs help with their bill, the help will be there."

Furthermore, Severn Trent Water said is is "investing more and progressing faster than any other water company to improve river health".  

The water company said 116 solutions on storm overflows have been delivered across Shropshire this year to reduce spills, and as part of its Green Recovery investment, Severn Trent said it has invested improve the water quality in the River Teme.   

"Lasting change requires a collective effort, and we’re totally committed to playing our part in improving river health, working in partnership with river users and communities. We have set out a clear ambition and investment plan, and this news means we can reduce our responsibility for rivers not achieving good ecological status to less than 2 per cent by 2030," the CFO and leading customer experience across Shropshire continued.

"What’s more, this plan is built on strong foundations given Severn Trent is the sector-leader for environmental performance and financial resilience - with a proven track record for delivering successful large-scale investment projects."