Climate change to drive ‘significant’ water investment

UK water companies are going to need to invest large amounts into their infrastructure in future.

That is the conclusion of a report from ratings agency Moody’s, which warned that England’s southeast is most exposed climate change and a growing population.

"To mitigate these risks, significant additional investment will be required, and the associated bill increases will add to affordability pressure,” said Stefanie Voelz, vice president and senior credit officer at Moody’s.

The report also found that, so far, there had been little credit impact from environmental, social and governance (ESG) issues on water companies, but this is likely to change as climate change and population growth both begin to bite.

Several water companies across the country have been looking at various forms of PPP-type structures to increase investment in their infrastructure.