Guernsey Water plans to renew and replace century-old infrastructure but bills will rise above inflation to fund it.
The utility plans to invest nearly £130 million by 2037 to upgrade the island’s water and wastewater systems.
The majority, around £72 million, will be spent on replacing or upgrading water collection and treatment systems, water mains, storage tanks, sewers, manholes, pumping stations and the wastewater centre at Belle Greve.
£20 million is earmarked for a new reservoir at Les Vardes Quarry - increasing local storage capacity by a third.
Guernsey Water says this will allow it to keep up with demand as the population increases, and make the island more resilient to droughts, which it expects will become more frequent due to climate change.
Another £20 million will go towards upgrading the three water treatment works to ensure drinking water remains safe.
Guernsey Water says the investment plan will be funded through a combination of increased customer charges and borrowing.
An above-RPI increase for 2026 has already been announced.
This will see metered customers see bills rise by around £4 a month, and unmetered customers by £6 a month.
Guernsey Water is promising to make efficiency savings to offset the level of future increases. Cost reductions of £355,000 are included in its 2026 Budget.
Managing Director Steve Langlois says spending now will save later.
“Failing to invest in the renewal of our infrastructure is not a cost-free option, as it stores up problems that will cost more to address in the future.
"If we were to do this, drinking water quality failures and water mains bursts would disrupt supplies to homes and businesses.
"Sewer collapses would cause flooding and pollution.
"Minimising these issues is essential, but it is also important to prioritise investment to ensure customers get best value for their money.
"The cost of eliminating these risks altogether would not be acceptable to customers, so it’s important to strike the right balance.”
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