Water and Waste water

Since privatisation in 1990, the water industry in the UK has experienced unprecedented levels of investment and has achieved significant quality and efficiency improvements.  Despite the investments (which run into the many billions of pounds) the cost to the consumer has been kept down due to a regulatory regime focused on only rewarding cost effective investments necessary to improve service and quality, as well as only providing a return to "finance functions" of the water companies. 

The 2009 periodic regulatory review (PR09) has been conducted with a challenging backdrop of: 

• turmoil in the capital markets increasing the cost of capital
• acute water scarcity in some parts of the country exacerbated by the emerging effects of climate change and the burdens of increased population growth
• the costs associated with increased incidence and severity of flooding
• increasing amounts of EU environmental legislation affecting the UK water industry
• an acceptance that the industry as a major user of energy has a responsibility to increase energy efficiency and reduce emissions associated with water and sewerage activities
• a realisation that waste products from the treatment of waste water have the potential to provide a low carbon energy source.

BDO provide a range of professional services to clients and investors focused in the supply chain to the regulated UK water industry.  We also advise clients who provide services, such as industrial effluent treatment, to commercial customers. Our clients also include businesses that design, manufacturers and operate sludge treatment facilities and waste to energy systems used by the water industry.

For more information please contact Marc Reinecke or Malcolm Joy, or alternatively contact your local BDO adviser.