Northern Rail boss new head of Northumbrian Water

Dec 16 2009 by Chris Knox, The Journal

NORTHUMBRIAN Water has revealed that it has appointed Heidi Mottram, the boss of rail services operator Northern Rail, as its new chief executive, and reassured shareholders that it will continue to increase dividends following Ofwat’s decision to cut water bills.

Mrs Mottram will join the Durham-based utility on March 1 as the company tries to find new ways of maximising profits as water use falls with cutbacks and closures at major industries in the North East.

She replaces John Cuthbert, 56, who has spent 20 years in the industry and has become one of the region’s highest-profile and most-respected executives, after overseeing its stock market floatation in 2003 and growth after it was sold by French company Lyonnaise des Eaux.

As it made the announcement yesterday, the company took the opportunity to assure its shareholders that it would continue to increase its dividends after utilities regulator Ofwat called for smaller-than-expected cuts to water bills over the next five years.

The firm, which provides water to 4.4 million customers with water in the North East and South East of England, said it expected to maintain its current policy of increasing dividends by 3% each year before inflation.

Under Ofwat’s changes, price limits are set to increase by an average of 0.5% a year before inflation and will lead to average household bills falling just below today’s levels by £3 in real terms over the period to 2015.

Mrs Mottram has worked in the rail industry since the mid-1980s, and as a station manager in Harrogate before joining Regional Railways North East as route manager, TransPennine Express, in the late 1980s.