Energy and Water

Midpoint 2.5%

Settlements in the utilities sector were depressed, with a mid-point of 2.5% (2.7% weighted). Half of the sector's pay deals were long-term ones.

There were 2% settlements at UK Coal (under the NUM mineworkers' union long-term agreement) and in the coal products industry (CPL). Oil workers at Shell's Stanlow refinery received 3%. The nuclear industry saw rises of 2.75%, as at BNFL (under the second year of a two-year deal) and the troubled British Energy group, which is currently in negotiations with the government in an effort to avoid insolvency. Workers at Urenco (Capenhurst) received 3.5%.

At other energy companies settlements ranged from under 2% to just over 4%. An inflation-linked 'RPI plus 0.5%' deal at MEB Contracting, for example, produced a second-year rise of 1.6% in July, while clerical, supervisory and management staff at Seeboard Powerlink (which supplies power to London Underground) received 4.2% under the first year of a three-year deal in April.

Elsewhere in the sector, gas industry staff at Centrica BGT received 3.0% in January. Water company settlements tended to be in the 2%-3% range. The April rise at Anglian Water was worth 2.75%, while Sutton and East Surrey Water staff received 3.0% in July.