Severn Trent looking for £1bn for 'transformation plan'
The water company says it will create 7000 jobs across the Midlands
Last updated 29th Sep 2023
Midlands water provider Severn Trent is looking to raise £1bn to help support a transformation plan, expected to bring 7000 jobs to the region.
The firm stresses it is "maintaining financial resilience" to spend £12.9bn on its network over the next five years.
The company says £5bn of funding will go towards improving capacity with £3bn focused towards aiding the natural environment.
The plan comes amid a period of intense scrutiny over the water sector and renewed speculation over the potential for nationalisation in the industry.
Thames water has been at the centre of the discussion, racking debts of over £10bn.
On Friday, Severn Trent said its new business plan will be submitted to regulator Ofwat on Monday following the equity raise.
The firm said the plan will help it towards a 16% reduction in leakage and a 30% reduction in spills from storm overflows, putting it on track to deliver the Government's 2050 industry targets five years early.
Severn Trent also said the investments are expected to create up to 7,000 jobs directly in the business and supply chain.
Liv Garfield, chief executive officer at Severn Trent, said: "By 2030 we will have transformed our network to provide our customers with the very best service.
"At the heart of this ambition is a commitment to a sustainable future - from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth.
"At the same time, our £550 million affordability scheme aims to ensure no customer in our region needs to worry about affording their water bill.
"We've listened hard to our customers, not only will we make sure we keep building on our sector-leading track record, but we will also work to make our region proud of their water company."