Water company hopes £11bn plan will see region thrive

Emma Staples said the company was investing in infrastructure, because "customer expectations had changed and we apologise as an industry for being slow to recognise that"

A water company has set out an £11bn plan for the next five years to tackle water shortages and cope with predicted population growth in the East of England.

Anglian Water's plan includes the creation of two new reservoirs and a pipeline to move water around the region more effectively.

Director of corporate affairs, Emma Staples, said: "We need to improve our performance to rebuild trust back with customers... and deliver on the infrastructure that's going to help this region thrive."

The plan also included £1bn to tackle storm overflows - the relief valves used when the sewerage system is at risk of being overwhelmed - as well as create treatment wetlands.

Anglian Water began the first phase of a new 350km (217.47 mile) pipe in November

The plan is expected to bring thousands of jobs to the region, according to the water company.

"We need to stay ahead of climate change, we need to deliver on the government's growth agency and that means making sure there is enough water to support the businesses that want to set up shop here and the customers that want to come and live here," Ms Staples said.

The Environment Agency previously rejected plans for new houses over fears about a lack of water.

Ms Staples said one of the best ways to protect the environment was to make sure there was enough water, with the problem of scarcity at the top of its customers' priority list.

"Making sure we don't have to take water from really sensitive rivers is absolutely crucial," she added.

One of two new reservoirs, at Chatteris in Cambridgeshire, would supply 250,000 homes, according to Anglian Water

About 700,000 more people were expected to be living in the East of England in the next 20 years, Anglian Water said.

Part of its proposal included an extension to a 350km (217.47 mile) pipeline, which was already under way.

The pipes are being laid in Lincolnshire and will eventually feed into Cambridgeshire, Essex, Norfolk and Suffolk.

'Prone to flooding'

Ms Staples said the region was "on the front line" of climate change.

"Not just water scarcity and dry in the summer, but [it is] low lying, below sea level, and prone to flooding in the winter," she said.

"We are responding to the challenges this region faces."

Customer bills would be expected to rise by between 30 and 40p a day, she added.

Ms Staples was asked about the just under £18m paid to shareholders, according to its most recent financial accounts.

She said shareholders had invested £1.5bn in the last five years, while customers "pay for about half what it takes to run the business and deliver infrastructure".

"We need to balance the books, make it affordable for customers and also make sure investors get a good return for money," she said, adding that the company had introduced a new medical needs tariff and offers of help to people on low incomes.