Welsh Water announces transformation of its operations to protect services and deliver better value for customers

The programme is designed to safeguard essential services, strengthen service resilience, reduce ‘back office’ costs and deliver better value for money by ensuring that as much customers’ money as possible is directed into improving frontline water and wastewater services.

As part of this programme, the company is reviewing its entire cost base, including the goods and services it procures, and expects to reduce its workforce by c12% (up to 500 roles) over the next 18-24 months from its current workforce of about 4,000. The intention is to protect and enhance frontline services and to increase efficiency in ‘back office’ and managerial positions.

The transformation will focus on reshaping the organisation, enabling greater use of technology and data and redesigning processes and ways of working. The transformation programme aims to maximise efficiency so that every possible pound can be invested in customer service, environmental improvements, and vital network investment. The programme will also ensure that the business remains on a long term financially stable and sustainable footing.

These changes take place against a backdrop of significant pressures on the water sector. In the past year, the industry has been downgraded by credit ratings agencies, at a time when investment needs have increased to fund improvements in infrastructure and the environment following the recent price review with Ofwat. This restructuring will help maintain the company’s financial resilience, while continuing to improve services for customers

Pete Perry, Chief Executive of Welsh Water, said: “Customers rightly expect us to invest in improving our services and to keep our own costs to a minimum – and that’s exactly what this programme will achieve. Our customers’ expectations have changed significantly in recent years, as have our regulatory requirements, and as a company we need to adapt. With customers’ bills increasing, we have challenged ourselves hard to reduce our own costs to ensure every pound we spend brings benefit to customers and maintains our financial resilience during a challenging period for the sector.

“I fully recognise that this will be an unsettling time for colleagues affected. We have not undertaken changes on this scale for more than a decade, and we will handle the process with care, compassion, and fairness. Wherever possible, we will prioritise voluntary exits, retraining, and redeployment, and we will work closely with our trade unions and provide full support to every colleague impacted.

“We are acting now so we can protect services for customers, investing more in our networks and the environment, and ensure that as much of our customers’ money as possible goes into the things that matter most: reliable water and wastewater services and support when people need us.”