THE head of Northumbrian Water is to take early retirement after nearly 20 years with the group.

Managing director John Cuthbert has decided to retire in March next year at the end of the Pity Me-based company’s financial year, it was announced yesterday.

Mr Cuthbert, who will be 57 when he leaves, last night said it was the “right time” to go.

It will coincide with the conclusion of the company’s current round of price setting for the period from 2010 to 2015.

Mr Cuthbert said: “We have been looking at succession planning across the whole of the management operation, in any big business like ours you have to pay attention to that, and it made me think about my position.

“We have the five-yearly price reviews and I definitely didn’t want to be leading the business in 2014 to 2015 by which time I would be 62.

“I came to the conclusion that the logical time from a business point of view was at the end of the review period.

“We will have completed the current price review by the end of March.”

Mr Cuthbert, a married father- of-two, is a deputy lieutenant in Durham, chairman of the Northern Business Forum, vice chairman of the Durham University Council and a member of the CBI Regional Council.

He also plays guitar with other members of the business community in the band, 55 Degrees, to help raise charity funds.

He said: “I quite like the idea of not being as busy, but I don’t relish the idea of not being busy at all. I am not withdrawing from the region and I have the great fortune to be involved in a lot of things.

“That is the kind of thing, along with some non executive positions, I am looking to be doing. I still want to stay involved.”

Mr Cuthbert joined the water industry from North Eastern Co-operative in 1991 and was appointed managing director of North-East Water in 1993 following the merger of Newcastle and Gateshead Water and Sunderland and South Shields Water companies.

When the French group, Lyonnaise des Eaux, bought Northumbrian Water in 1995, he transferred within the group to become managing director of Essex and Suffolk Water.

He returned to the North- East as managing director of Northumbrian Water Group in 2001, and continued in this role when it returned to the stock market as an independent company in 2003 after its sale by the French group.

He was unable to pick out one high point in particular, adding: “There have been so many things. Over the past six months, we have had recognition for a lot of the things we have believed for a long time.

“We were Utility Company of the Year for 2008 and received The Queen’s Award for Enterprise in the category of sustainable development in April. It is not just about what we have done in the past 12 months, it is recognising what the people in the business have done over the years.”

Mr Cuthbert also praised his workforce, adding: “The thing that moves the business performance is the people. I am proud of the investments we have made, but the thing you look back at with most pride is the people.”

Northumbrian Water group’s chairman, Sir Derek Wanless, said: “John has made an outstanding contribution to the water industry and Northumbrian Water. He has led four price reviews.

The Board fully understands and appreciates his decision to step down next year.”