Dŵr Cymru Welsh Water expects to release less than 40% of its wastewater capital schemes to the supply chain by the end of 2026-27, a level Ofwat called significantly below the sector average. In August 2026 the regulator said the company had not shown that it "remains on track" to deliver its 2025-30 commitments.
Outputs ahead, spending behind
Wastewater delivery is uneven. The company delivered 59% more price control deliverable outputs than its baseline in 2025-26, measured in value terms, and met 98% of its interim milestones. But it underspent its wastewater deliverable allowances by 66%, and some growth schemes at sewage treatment works are forecast to slip into the next period.
Water lags on outputs
On water the pattern reverses. Outputs were 23% below baseline in 2025-26, although most of the allowance was spent and 94% of interim milestones were met. Around 57% of water capital schemes are expected to be with the supply chain by the end of 2026-27.
Investment below guidance
The company invested £617 million in its networks in 2025-26, against about £665 million it had guided in November 2025. Capital investment excluding infrastructure renewals was £496 million, £12 million lower than a year earlier. The company says National Environment Programme requirements will stay uncertain until the end of 2026, and its storm overflow program, put at £889 million for 2025-30, has been re-phased.
How the delivery lag sits alongside the company's regulatory standing, its finances and the £600 million Cwm Taf project, and which decisions to watch through 2027, are set out in the full report. The full report, Water Systems Overview: Dŵr Cymru Welsh Water, is available for USD 499. For a free overview, read the Dŵr Cymru Welsh Water Utility Snapshot.