Anglian Water has become the UK’s first water company to enshrine public interest in its constitution.
The company has officially changed its Articles of Association, embedding public interest within the constitutional make-up of the business.
It also intends to sign up to a set of Responsible Business Principles to report performance against. This will see Anglian publish an annual statement which sets out how it is doing in relation to key environmental, social and ethical targets.
This morning, Utility Week reported comments from Ofwat chief executive Rachel Fletcher, who said she was considering whether licence change was a viable way of committing water companies to protect the environment and support their wider communities.
She stressed that she would only go down that route if there was a clear appetite from the sector.
Anglian said it was important for any kind of social contract to be instigated by a company rather than imposed, if it was to have real meaning.
Anglian chief executive Peter Simpson said: “Our main board, in conjunction with our shareholders, have approved a fundamental change to our company Articles of Association, legally enshrining public interest within the constitutional make up of our business. I’m also proud to say that Anglian Water is the first water company – and I believe the first utility – to make these changes, firmly embedding our commitment in the core documents that govern the overall management of our business.
“This means our reporting will be aligned with best practice reporting standards across Europe, where Public Interest Entities are required to publish a non-financial reporting statement. Although water companies are not defined by the UK government as Public Interest Entities, we’re aligning ourselves with these companies, in recognition of the high standards it ensures.
“For years we’ve operated diligently in the background, striving to minimise our impact on the environment while positively contributing to communities. Today’s change marks a new era that codifies that approach, ensuring all future owners and investors will be obligated to work in the same way, and giving regulators, stakeholders and customers the confidence that this is simply how we work.
“The bar is set high (and appropriately so) for us as providers of an essential public service. This change should signal that we are very comfortable with those high expectations, and will always seek to exceed them.”
This morning, Anglian was named as one of four water companies asked by Ofwat to revise their business plans for 2020 – 2025. Ofwat identified a £251 million gap between its estimate and Anglian’s on the base costs for water – equivalent to 16% of the full costs. The difference in wastewater is £406 million (also 16%), Ofwat said.