Latest news with #infrastructureinvestment
BBC News
3 days ago
- Business
- BBC News
Water firm's losses deepen after Devon parasite outbreak
South West Water's parent company has reported widening losses following a parasite outbreak in Group posted a pre-tax loss of £72.7m for the year ending March, a sharp increase from the £9.1m loss recorded the previous year. A major contributor was the cryptosporidium outbreak in Brixham, south Devon, which cost the company about £21m, it increased water bills by 28% on average from April, which it said would fund ongoing investment plans. The parasite outbreak, which contaminated the local water supply, led to hospitalisations and more than 100 reported cases of illness, including symptoms such as diarrhoea. Pennon said about 800 staff and supply chain partners worked intensively over eight weeks to restore safe drinking water to the affected addition to the outbreak costs, the company also absorbed £15.8m in restructuring expenses over the the financial hit, Pennon said it was pushing ahead with plans to invest £3.2bn in its infrastructure by 2030. The investment will fund new reservoirs, storm overflow repairs, net zero initiatives, and service support this, SWW customers saw their bills rise by an average from April. Customers of Bristol Water and Sutton and East Surrey Water, also owned by Pennon, faced increases of 5% and 3%, respectively. Pennon said the bill hikes would cover about a third of the planned investment. 'Tough decision' "We know customers are worried about rising bills to fund this level of investment," said Susan Davy, chief executive of Pennon. "While we have made the tough decision to put bills up in 2025/26, for the first time in over a decade, two-thirds of our investments are being funded by our supportive investors and debt providers."Ultimately everyone will benefit from the investments we are making, from building reservoirs, to fixing storm overflows, powering our net zero ambitions and helping to create economic growth."Despite ongoing dry weather, Ms Davy said the South West was not expected to face a hosepipe ban this summer. Pennon said it anticipates a return to profitability in the coming year, driven by increased revenues and streamlined business operations. A landmark review by the independent Water Commission found the water sector in England and Wales is failing and needs stronger regulation to better protect billpayers and the environment.
Daily Mail
3 days ago
- Business
- Daily Mail
South West Water owner's losses rise by £63million after Brixham parasite outbreak
Pennon saw losses widen last year as restructuring costs and the impact of the Brixham parasite outbreak weighed on the South West Water owner. The group, whose customers saw bills surge by an average of 28 per cent in April, posted a pre-tax loss of £72.7million for the year 31 March, up from a £9.1million loss the prior year. The parasite outbreak in Brixham, south Devon, which left some people hospitalised, cost Pennon about £21million, as around 800 staff and supply chain partners were dispatched for an eight-week effort to return safe clean drinking water to the area. Pennon also faced £15.8million in costs related to restructuring actions over the year. Plans to ramp up investment in infrastructure, and encourage customers to use less water to save money, also hit profitability, according to the group. Pennon is targeting £3.2billion of investment by 2030, incorporating work to build new reservoirs, fix storm overflows, meet its net zero commitments, and improve services for customers. Bills for South West Water customers surged by 28 per cent on average from April, while bills for Bristol Water and Sutton and East Surrey (SES) customers are rising by 5 and 3 per cent respectively. Pennon, which expects to return to profitability in the year ahead, said the bill hikes would help fund around a third of its investments. Susan Davy, Pennon's chief executive, added: 'We know customers are worried about rising bills to fund this level of investment. 'While we have made the tough decision to put bills up in 2025-26 - for the first time in over a decade - two-thirds of our investments are being funded by our supportive investors and debt providers. 'Ultimately everyone will benefit from the investments we are making - from building reservoirs, to fixing storm overflows, powering our net zero ambitions and helping to create economic growth.'
BBC News
22-05-2025
- General
- BBC News
Rectory Hill opened after water pipework installed
A main road in Guernsey has reopened after 12 weeks of Hill had been closed since 4 March while Guernsey Water installed 1,312ft (400m) of pipework as part of the development of a new main ring for the northern Water said the ring main acted like a motorway for the water next phase of the work, which involves installing an additional 1,640ft (500m) of pipework, has already begun on Route de L'Eglise, in Castel, and is due to be finished next year, the water company said. Carl Falla from Guernsey Water said: "The ring main is essential island infrastructure, with increased growth and development across the island."Failing to carry out this work now could result in pressure drops and even a loss of supply to thousands in future."He said the project was one of the largest new water infrastructure investments being undertaken by the utility company and was estimated to take between five and seven years to complete - at the cost of about £11m.
Mail & Guardian
21-05-2025
- Business
- Mail & Guardian
Godongwana keeps medium-term infrastructure spending above R1tn to boost ailing economy
Finance Minister Enoch Godongwana delivers the 2025 Budget. Photo: Jeffrey Abrahams/Gallo Images Finance Minister Presenting the 2025 budget in parliament Godongwana insisted it was not an austerity budget, and aimed to promote faster economic growth. This was his third budget after the first one in February and the 'To shield our country from the worst impacts of an increasingly uncertain global environment, remains anchored on four pillars: maintaining macroeconomic stability, implementing structural reforms, improving state capability, and accelerating infrastructure investment,' he said. 'This budget invests over R1 trillion in critical infrastructure to lift economic growth prospects and improve access to basic services. Madam Speaker, this is done without compromising the fiscal strategy of sustainable public finances.' In the now-defunct 'Budget 2.0' tabled in March, the treasury had said an estimated R1.03 trillion would be spent over the next three years on public infrastructure projects by state-owned companies, other public entities, and national, provincial and local government. At the time, it said this would include R402 billion for road infrastructure and R219.2 billion on energy infrastructure, while R156.3 billion would flow to water and sanitation infrastructure. On Wednesday, Godongwana said the recently launched second phase of 'In this difficult environment, it remains vital that we still take actions to increase revenue to protect and bolster frontline services, while expanding infrastructure investments to drive economic activity,' he said, Public infrastructure spending over the next three years would exceed R1 trillion, the minister said, with the money going to maintenance and repairs, building new infrastructure, as well as acquiring equipment and machinery. The focus will still be on transport and logistics, energy and water and sanitation, with the same R402 billion allocated to transport and logistics as was done in March. This will include R93.1 billion for the South African National Roads to keep the 24 000km national road network in active maintenance and rehabilitation. Godongwa said the Passenger Rail Agency of South Africa would get R66.3 billion for its rolling stock fleet renewal and the renewal of the signalling system. The energy sector will invest R219.2 billion on strengthening the electricity supply network, from generation to transmission and distribution, including investments in renewable energy projects 'which continue to contribute to stabilising the power supply resulting in reduced load-shedding', the minister said. Efforts to connect more renewable energy projects to the grid and expand the transmission network remain on track, he added. In the budget, the water and sanitation sector will spend R156.3 billion on expanding dams, as well as bulk infrastructure to service mines, factories and farms. 'To further support infrastructure delivery and improve spending efficiency, the national treasury continues to implement reforms that will facilitate greater private sector participation in public infrastructure,' Godongwana said.
