The investment is being made by Infrastructure North, comprised of four of the largest utility companies in the country in Northern Gas Networks, Northern Powergrid, Yorkshire Water and Northumbrian Water.
According to an independent report due to be released next week for every £1 the four companies collectively spend, a ripple effect of 87 pence additional spend in the region is created.
Edge Analytics, who undertook the report, said this means over the next five years the four companies will generate £10 billion of additional investment in the north.
Northern Powergrid said that in the two years since the last report the four companies have made “significant economic impact”.
It said there are now 40 per cent more businesses in the supply chains with 33 per cent more in the north of the country, creating 1,000 more jobs.
Northern Powergrid’s finance director Tom Fielden said: “We are investing £2.16 billion each year in the region to ensure customers continue to receive a high quality and reliable service.
“This investment is a key part of developing the northern economy as part of the Northern Powerhouse to rebalance growth across the regions in the UK.”
Yorkshire Water said the four companies’ “joint approach” means they are “best placed” to offer additional support to the more vulnerable members of our society.
Yorkshire Water’s chief executive Richard Flint said: “Although we are beginning to see signs of economic growth, we understand that affordability is still a big issue for our customers. We are committed to keeping costs down for our customers and bills will be reduced in real terms over the next five years.”
Minister for the Northern Powerhouse James Wharton MP said: “I’m very pleased to see collaboration – the key lifeblood of the Northern Powerhouse – between these companies to align plans for growth and invest in long-term solutions. I’d welcome further collaboration with other companies across the north to extend this good work.”