Northumbrian Water
Encyclopedia
Northumbrian Water Group plc (NWG) is the holding company for several companies in the water supply, sewerage and waste water industries. NWG's largest subsidiary is Northumbrian Water Limited
(NWL), which is one of ten companies in England
and Wales
that are regulated water supply and sewerage utilities. NWL is the principal water supplier in the north-east of England, where it trades as Northumbrian Water, and also supplies water to part of eastern England, as Essex & Suffolk Water. In 2011 it was acquired by Cheung Kong Infrastructure Holdings
.
, was formed and became responsible for sewerage and some water supply functions that had previously been split among over 80 local authorities and water undertakings. Water supply to more than half the region was left in the hands of three existing statutory water companies (SWC):
In 1988, the Newcastle & Gateshead and Sunderland & South Shields companies were acquired in two separate operations by Lyonnaise des Eaux et de l'Eclairage (Lyonnaise), a company listed on the Paris Bourse
, for £39.1m and £35.9m respectively. In 1992, the Newcastle company was merged into the Sunderland company, which was renamed North East Water (NEW).
In 1989, Lyonnaise acquired two further SWCs, Essex
Water Company and Suffolk
(formerly East Anglia
n) Water Company and, in 1994, merged them to form Essex & Suffolk Water.
Under the Water Act 1989, as part of the UK Government's privatisation programme for the water industry, NWA's operations were transferred to a holding company
, Northumbrian Water Group (NWG); the water and sewerage activities were vested in a subsidiary
company, Northumbrian Water Limited
(NWL), while three much smaller subsidiaries were set up to handle other activities, such as solid and liquid waste treatment and environmental consultancy. In November 1989, NWG was privatised, along with the other regional water companies established under the 1989 Act.
In 1995, Lyonnaise acquired NWG at a cost of £823m. The following year, it merged NEW into NWL—which thus became responsible for all water supply in the region, except for the Hartlepool area—and in 2000 it merged Essex & Suffolk Water into NWL.
In May 2003 Suez, who had acquired Lyonnaise by merger in 1997, sold 75% of NWG to a consortium of private investors, and the company was listed on the London Stock Exchange
in September 2003.
In 2011 it was acquired by Cheung Kong Infrastructure Holdings
.
NWL holds an Appointment under the Water Act 1989 as a water and sewerage undertaker. The Appointment covers two areas:
Although the Instrument of Appointment covers both the northern and southern areas, for operational purposes NWL treats them as separate trading divisions, Northumbrian Water
and Essex & Suffolk Water.
(Caledonian Environmental) and three in Ayrshire
(Ayr Environmental). It also operates a waste water treatment plant for Cork
City Council, in Ireland (Northumbrian Water Projects), and is the major partner in a joint venture with the Government of Gibraltar (AquaGib) that operates the territory's dual drinking water and sea water distribution systems. Other minor activities include consultancy (SA Agrer NV) and vehicle leasing services.
, who was appointed as a non-executive director
in December 2003 and became Chairman in July 2006. He was CEO of NatWest Bank until 1999 and a non-executive director at Northern Rock
Bank until November 2007, when he resigned after he was criticised for his role (as chairman of the Risk Committee) in the collapse of that bank. NWG has been criticised for a lack of transparency in omitting mention of Sir Derek's involvement with Northern Rock from the profile of its chairman in its annual report.
The Group's chief executive is Heidi Mottram OBE, who was appointed in April 2010. She previously held senior positions in the rail industry and was appointed an OBE
in the 2010 New Year honours list, for services to the rail industry.
Northumbrian Water
Northumbrian Water Group plc is the holding company for several companies in the water supply, sewerage and waste water industries. NWG's largest subsidiary is Northumbrian Water Limited , which is one of ten companies in England and Wales that are regulated water supply and sewerage utilities...
(NWL), which is one of ten companies in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
that are regulated water supply and sewerage utilities. NWL is the principal water supplier in the north-east of England, where it trades as Northumbrian Water, and also supplies water to part of eastern England, as Essex & Suffolk Water. In 2011 it was acquired by Cheung Kong Infrastructure Holdings
Cheung Kong Infrastructure Holdings
Cheung Kong Infrastructure Holdings or CKI, is the largest publicly listed infrastructure company in Hong Kong with diversified investments in energy infrastructure, transportation Infrastructure, water Infrastructure and infrastructure related business, parented by Cheung Kong Holdings,...
.
History
In 1974, the Northumbrian Water Authority (NWA), one of ten public sector regional water authorities created under the Water Act 1973Water Act 1973
The Water Act 1973 is an Act of the Parliament of the United Kingdom that reorganised the water, sewage and river management industry in England and Wales...
, was formed and became responsible for sewerage and some water supply functions that had previously been split among over 80 local authorities and water undertakings. Water supply to more than half the region was left in the hands of three existing statutory water companies (SWC):
- HartlepoolHartlepoolHartlepool is a town and port in North East England.It was founded in the 7th century AD, around the Northumbrian monastery of Hartlepool Abbey. The village grew during the Middle Ages and developed a harbour which served as the official port of the County Palatine of Durham. A railway link from...
Water Company - NewcastleNewcastle upon TyneNewcastle upon Tyne is a city and metropolitan borough of Tyne and Wear, in North East England. Historically a part of Northumberland, it is situated on the north bank of the River Tyne...
& GatesheadGatesheadGateshead is a town in Tyne and Wear, England and is the main settlement in the Metropolitan Borough of Gateshead. Historically a part of County Durham, it lies on the southern bank of the River Tyne opposite Newcastle upon Tyne and together they form the urban core of Tyneside...
Water Company - Sunderland & South ShieldsSouth ShieldsSouth Shields is a coastal town in Tyne and Wear, England, located at the mouth of the River Tyne to Tyne Dock, and about downstream from Newcastle upon Tyne...
Water Company
In 1988, the Newcastle & Gateshead and Sunderland & South Shields companies were acquired in two separate operations by Lyonnaise des Eaux et de l'Eclairage (Lyonnaise), a company listed on the Paris Bourse
Paris Bourse
The Paris Bourse is the historical Paris stock exchange, known as Euronext Paris from 2000 onwards.-History and functioning:...
, for £39.1m and £35.9m respectively. In 1992, the Newcastle company was merged into the Sunderland company, which was renamed North East Water (NEW).
In 1989, Lyonnaise acquired two further SWCs, Essex
Essex
Essex is a ceremonial and non-metropolitan county in the East region of England, and one of the home counties. It is located to the northeast of Greater London. It borders with Cambridgeshire and Suffolk to the north, Hertfordshire to the west, Kent to the South and London to the south west...
Water Company and Suffolk
Suffolk
Suffolk is a non-metropolitan county of historic origin in East Anglia, England. It has borders with Norfolk to the north, Cambridgeshire to the west and Essex to the south. The North Sea lies to the east...
(formerly East Anglia
East Anglia
East Anglia is a traditional name for a region of eastern England, named after an ancient Anglo-Saxon kingdom, the Kingdom of the East Angles. The Angles took their name from their homeland Angeln, in northern Germany. East Anglia initially consisted of Norfolk and Suffolk, but upon the marriage of...
n) Water Company and, in 1994, merged them to form Essex & Suffolk Water.
Under the Water Act 1989, as part of the UK Government's privatisation programme for the water industry, NWA's operations were transferred to a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, Northumbrian Water Group (NWG); the water and sewerage activities were vested in a subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
company, Northumbrian Water Limited
Northumbrian Water
Northumbrian Water Group plc is the holding company for several companies in the water supply, sewerage and waste water industries. NWG's largest subsidiary is Northumbrian Water Limited , which is one of ten companies in England and Wales that are regulated water supply and sewerage utilities...
(NWL), while three much smaller subsidiaries were set up to handle other activities, such as solid and liquid waste treatment and environmental consultancy. In November 1989, NWG was privatised, along with the other regional water companies established under the 1989 Act.
In 1995, Lyonnaise acquired NWG at a cost of £823m. The following year, it merged NEW into NWL—which thus became responsible for all water supply in the region, except for the Hartlepool area—and in 2000 it merged Essex & Suffolk Water into NWL.
In May 2003 Suez, who had acquired Lyonnaise by merger in 1997, sold 75% of NWG to a consortium of private investors, and the company was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in September 2003.
In 2011 it was acquired by Cheung Kong Infrastructure Holdings
Cheung Kong Infrastructure Holdings
Cheung Kong Infrastructure Holdings or CKI, is the largest publicly listed infrastructure company in Hong Kong with diversified investments in energy infrastructure, transportation Infrastructure, water Infrastructure and infrastructure related business, parented by Cheung Kong Holdings,...
.
Group structure
During the period of its ownership by Lyonnaise/Suez, the group's businesses were owned through a holding company known, from 2001 onwards, as Ondeo Services UK plc. In preparation for the disposal of its UK water businesses, Suez set up another holding company, Atlantic Water Limited, with Ondeo Services as its wholly owned subsidiary. Atlantic Water was then bought by NWG, which was incorporated for that purpose. NWG's subsidiaries are thus owned via two intermediate holding companies. The current group structure (ownership 100% except where noted) is:- Northumbrian Water Group plc
- Atlantic Water Limited
- Northumbrian Services Limited (renamed from Ondeo Services)
-
- Northumbrian Water Limited (NWL)
- Northumbrian Water Finance plc
- Caledonian Environmental Services plc
- Caledonian Environmental Levenmouth Treatment Services Limited
- Ayr Environmental Services Limited (75%)
- Ayr Environmental Services Operations Limited
- Northumbrian Water Projects Limited
- AquaGib Limited (66.67%)
- Vehicle Lease and Service Limited (50%)
- SA Agrer NV (via an intermediary)
-
- Northumbrian Services Limited (renamed from Ondeo Services)
- Atlantic Water Limited
Northumbrian Water Limited
NWL is by far the largest of NWG's subsidiaries. In 2010 it accounted for £657.8m out of the Group's total revenue of £704.7m (93%), and for £268.9m out of total operating profit of £275.8m (97%), and employed 2,930 of the Group's 3,105 employees (94%).NWL holds an Appointment under the Water Act 1989 as a water and sewerage undertaker. The Appointment covers two areas:
- water and sewerage services in the counties of NorthumberlandNorthumberlandNorthumberland is the northernmost ceremonial county and a unitary district in North East England. For Eurostat purposes Northumberland is a NUTS 3 region and is one of three boroughs or unitary districts that comprise the "Northumberland and Tyne and Wear" NUTS 2 region...
, Tyne and WearTyne and WearTyne and Wear is a metropolitan county in north east England around the mouths of the Rivers Tyne and Wear. It came into existence as a metropolitan county in 1974 after the passage of the Local Government Act 1972...
, DurhamCounty DurhamCounty Durham is a ceremonial county and unitary district in north east England. The county town is Durham. The largest settlement in the ceremonial county is the town of Darlington...
and parts of North YorkshireNorth YorkshireNorth Yorkshire is a non-metropolitan or shire county located in the Yorkshire and the Humber region of England, and a ceremonial county primarily in that region but partly in North East England. Created in 1974 by the Local Government Act 1972 it covers an area of , making it the largest...
(including the TeessideTeessideTeesside is the name given to the conurbation in the north east of England made up of the towns of Middlesbrough, Stockton-on-Tees, Redcar, Billingham and surrounding settlements near the River Tees. It was also the name of a local government district between 1968 and 1974—the County Borough of...
conurbation), except for a small area around Hartlepool that is excluded from the water supply licence because it is still supplied by Hartlepool WaterHartlepool WaterHartlepool Water is a water company that covers the town of Hartlepool and surrounding area in the North East of England. It is owned by Anglian Water.Hartlepool Water does not provide sewerage services. These are provided by Northumbrian Water....
, a water-only company that is now owned by Anglian WaterAnglian WaterAnglian Water is a privatised water company that operates in the East of England. Named for East Anglia, apart from Norfolk, Suffolk and Cambridgeshire it also covers Lincolnshire, Essex, Bedfordshire, Buckinghamshire, Northamptonshire, a small part of north Nottinghamshire and Greater London...
. - water-only services in an area of eastern England covering part of the counties of Essex and Suffolk.
Although the Instrument of Appointment covers both the northern and southern areas, for operational purposes NWL treats them as separate trading divisions, Northumbrian Water
Northumbrian Water
Northumbrian Water Group plc is the holding company for several companies in the water supply, sewerage and waste water industries. NWG's largest subsidiary is Northumbrian Water Limited , which is one of ten companies in England and Wales that are regulated water supply and sewerage utilities...
and Essex & Suffolk Water.
Other activities
NWG is involved in two projects to build and operate waste water treatment plants in Scotland, one at LevenmouthLevenmouth
Levenmouth is a small conurbation on the north side of the Firth of Forth, on the east coast of Scotland. It consists of three coastal towns, eleven villages inland and smallerHamlets. The industrial towns of Buckhaven and Methil lie on the west bank of the River Leven, and the resort town of Leven...
(Caledonian Environmental) and three in Ayrshire
Ayrshire
Ayrshire is a registration county, and former administrative county in south-west Scotland, United Kingdom, located on the shores of the Firth of Clyde. Its principal towns include Ayr, Kilmarnock and Irvine. The town of Troon on the coast has hosted the British Open Golf Championship twice in the...
(Ayr Environmental). It also operates a waste water treatment plant for Cork
Cork (city)
Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...
City Council, in Ireland (Northumbrian Water Projects), and is the major partner in a joint venture with the Government of Gibraltar (AquaGib) that operates the territory's dual drinking water and sea water distribution systems. Other minor activities include consultancy (SA Agrer NV) and vehicle leasing services.
Management
NWG's present Chairman is Sir Derek WanlessDerek Wanless
Sir Derek Wanless is an English banker and adviser to the United Kingdom Government.He was educated at the Royal Grammar School in Newcastle, has an MA in Mathematics from King's College, Cambridge which he attended on a support grant from Westminster Bank...
, who was appointed as a non-executive director
Non-executive director
A non-executive director or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way...
in December 2003 and became Chairman in July 2006. He was CEO of NatWest Bank until 1999 and a non-executive director at Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
Bank until November 2007, when he resigned after he was criticised for his role (as chairman of the Risk Committee) in the collapse of that bank. NWG has been criticised for a lack of transparency in omitting mention of Sir Derek's involvement with Northern Rock from the profile of its chairman in its annual report.
The Group's chief executive is Heidi Mottram OBE, who was appointed in April 2010. She previously held senior positions in the rail industry and was appointed an OBE
Order of the British Empire
The Most Excellent Order of the British Empire is an order of chivalry established on 4 June 1917 by George V of the United Kingdom. The Order comprises five classes in civil and military divisions...
in the 2010 New Year honours list, for services to the rail industry.