The UK water sector: affordability and environmental performance

The UK water sector faces a critical challenge: reversing decades of underinvestment while managing customer affordability. For our holdings United Utilities and Severn Trent, the path forward requires simultaneously addressing environmental degradation and keeping bills manageable during a cost-of-living crisis. This article examines how both companies are navigating this transformation as the sector enters AMP8 (2025-30) with significantly larger capital programmes and intensifying regulatory scrutiny.