Investment in the UK’s largest water-only company
Affinity Water Limited (“Affinity Water”) is the UK’s largest water-only company serving three geographically separate regions in the South East of England. Affinity Water generates income from supplying water to both residential and, via intermediaries, commercial consumers within a 4,515km² supply area. In doing so, Affinity Water maintains 95 water treatment works and over 100 reservoirs.
HICL Infrastructure Company Limited and other funds managed by InfraRed acquired a 36.6% equity interest in the various entities that comprise the Affinity Water Group in 2017.
Through its representation on the Affinity Water Board, InfraRed provides stewardship on Affinity Water’s strategic plans to invest in infrastructure which increases the provision of clean water, promotes the reduction of water consumption and protects the environment as outlined below.
water supplied per day*
water supplied sourced from groundwater sources*
Affinity Water to invest in the business over the period 2020 to 2025*
ecological surveys completed under programme to promote biodiversity*
Increasing the provision of clean water
Affinity Water plans to spend c. £110 million developing additional water treatment capabilities, including evaluating new strategic resources, that could provide up to an extra 100 million litres of potable water per day. Affinity Water has also identified potential supply transfer schemes as a means to secure additional water supply for customers within its supply area.
Promoting the reduction of water consumption
Affinity Water plans to invest £59 million in order to deploy meters across 80% of customer sites by 2025 and 90% of sites by 2045. It is estimated that the metering programme can deliver an 18% reduction in demand. Affinity Water is also supporting and encouraging customer side demand management by providing and installing free water saving devices to metered customers as well as providing individuals with advice on how to reduce water consumption during their daily routine.
Protecting the environment
Affinity Water plans to spend c. £53 million on projects to protect the environment and increase the region’s resilience to drought. In particular, this includes restoring the natural flow of chalk streams and creating a sustainable habitat for life within and surrounding its chalk streams.
* As reported by Affinity Water in its latest published accounts for the year ended 31 March 2019.