Dŵr Cymru Welsh Water invested £617 million into its water and wastewater networks during 2025/26, as part of a longer-term programme to strengthen ageing infrastructure and improve environmental performance.
The announcement coincides with Ofwat formally confirming a £44.7 million enforcement package against the company, first proposed in March, following an investigation into failures in the operation of its wastewater assets. The package will fund measures to reduce spills from storm overflows, tackle groundwater entering the sewer network and improve river water quality in sensitive catchments, with costs absorbed by the company and not passed on to customers.
On the investment side, the spend included £134 million on environmental improvements, £85 million on leakage reduction and £35 million to replace older pipes and improve drinking water quality. Projects underway include a new wastewater treatment works to enhance water quality on the Afon Teifi, a £4 million underground tank in Ferndale to reduce storm overflow operations, and a £5 million scheme in the Conwy Valley to replace 16km of ageing water pipes.
Welsh Water pointed to early signs of improvement during 2025/26, including reductions in leakage, fewer customer complaints on water quality and a fall in internal sewer flooding incidents. The 2025/26 spend is the opening phase of a £4.2 billion capital investment programme running to 2030, described by chair Jane Hanson as the most ambitious in the company's history, with £6 billion of total expenditure planned over the period.
