OREANDA-NEWS.  The Board of Glas Cymru, which owns Welsh Water, has today confirmed that it has changed the structure of the Glas Cymru Group following approval from its Members at a recent Extraordinary General Meeting and a Scheme of Arrangement in the High Court.

The creation of a new holding company for the Group - namely Glas Cymru Holdings Cyf - will hold the existing Glas Cymru Group and enable the potential creation of new subsidiary companies, joint ventures and other commercial activities.

In modernising the Glas Cymru structure, these changes will enable the company to respond more effectively to changes within the water and wastewater sectors. The Board has also reaffirmed its commitment to safeguarding Welsh Water's not-for-profit model and its core purpose which is to provide the most essential of public services to our customers at the best possible price.

·     This Glas Cymru Members voted in favour of the proposed changes to the Group's structure at an  Extraordinary General Meeting on 22 February. 

·     D?r Cymru Welsh Water serves most of Wales, Herefordshire and parts of Deeside. It is one of 10   water and sewerage companies in England and Wales. Unlike other water companies, it does not  have any shareholders.

·     Welsh Water's assets and capital investment are financed by bonds and retained financial  surpluses. The business model aims to reduce Welsh Water's asset financing cost, the water  industry's single biggest cost. Its customer reserves now stand at nearly ?2 billion, having grown  more than ten-fold since Glas Cymru (in its original form) acquired Welsh Water in 2001. Its financial  gearing ratio is now down to 57%.

·     Welsh Water has ?26 billion network of assets.

·     With no shareholders, Glas Cymru has 74 independent Members. Members carry out an important  corporate governance role, and for this reason membership is personal and Members are not  appointed to represent any particular group or stakeholder interest.