|The jobs toll in the water industry has risen again as Anglian Water said
it was cutting up to 400 posts over the next two years.
The company said the
redundancies were part of group restructuring in response to tougher competition and calls
by the water regulator for cuts in bills.
The reorganisation would save it £40 million a year, it added.
Anglian is the third water company to announce job cuts since the regulator unveiled
Last week Severn Trent announced 1,100 job cuts and on Tuesday, Yorkshire Water said it
would axe 500 jobs over the next 12 months.
Robin Gourlay, Anglian chairman, said: "It has been clear for some time that the
UK regulatory environment would become tougher and we have planned
Ofwat unveiled its latest price controls last month, calling for cuts of around £30 on
domestic water bills.
Anglian has accepted the plans, which will mean a 10% fall in its customers' bills next
year, taking the average to £245.
The company said the bills would remain stable until 2005.
Over the next five years Anglian said it would spend £1.4 billion improving water
standards and meeting its environmental obligations.
Its strategy is to improve the cost efficiency in its regulated business and go for
growth in other activities, such as its transport leasing business and sewage maintenance
The company will be based around three units - its day-to-day water operations, an
asset management business and a technology group which will
provide services both to its own water operations and other companies.