Press Release
Welsh Water tops customer service with strong half year performance
123 million invested in its services in the last 6 months
6th year of below inflation price increases
Rated by Institute of Customer Service as best water company for customer satisfaction and customer trust
Developer Services ranked best for customer service amongst the 10 water and sewerage companies
Company generates and uses record amount of renewable energy
D r Cymru Welsh Water has today announced its half-year results which confirms that its strong performance over the past six months has enabled the company to deliver 123 million of investment and strong levels of service to its customers in the six months to September 2015.
These latest results follows the company delivering its best overall performance last year since being set up as a not-for-profit company – with no shareholders – in 2001. This means that any gains it makes are reinvested directly into the company. With high levels of service and keeping annual price increases below the rate of inflation, this has helped it become the best water company in England and Wales for customer satisfaction and customer trust as measured by the UK’s Institute of Customer Service.
Its Developer Services Team, who are responsible for connecting thousands of homes and business to its network every year, is also now ranked by Water UK as the best in the industry amongst the 10 water and sewerage companies in England and Wales.
Welsh Water, which provides water and sewerage services to over three million people across much of Wales, Herefordshire and parts of Deeside, plans to invest a further 184 million in its capital projects and essential infrastructure between October 2015 and April 2016. Examples of key investments over the first six months of this financial year include:
strengthening the resilience of drinking water supplies to over 400,000 customers by connecting our three new water treatment works to its network, namely Llyn Conwy, Garreglwyd and Dolbenmaen Water Treatment Works in North Wales, with the investment totalling nearly 50 million. This is part of a 120 million investment being undertaken by the company to upgrade and refurbish 15 water treatment works in total across the area it serves such as Llyn Conwy, Alwen, Alaw, Cefni in North Wales and Bont-goch in Ceredigion
reducing the risk of local sewer flooding which could adversely impact its customers and environment by starting work on a further 25 million investment programme in its innovative RainScape programme in Llanelli and Gowerton over the next five years.
This follows a 15 million investment in recent years and is aimed at removing more surface water from its combined sewer network
improving security of supply to around 100,000 customers in Merthyr Tydfil by investing 2.5 million in a scheme to divert a strategic water main
safeguarding water quality issues in Hereford by investing 2 million to replace 23km of old cast iron main which can cause discoloured water
upgrading the existing Bynea sewage pumping station in Llanelli by investing 4 million to help alleviate the risk of internal sewer flooding to properties in the local community
increasing the capacity of the wastewater network in the St Helen’s area of Swansea through a
1.3 million scheme that will enable it to cope with storm weather conditions.
In addition, Welsh Water has confirmed plans to invest 5million from April 2016 to strengthen its drinking water supplies in Pembrokeshire following last week’s burst water main near Llechryd. The investment forms part of a wider 10 million scheme the company will deliver in the area when upgrading the local network.
This latest investment delivered by Welsh Water is helping the company deliver its services more sustainably. As one of the largest energy users in Wales, Welsh Water is making significant progress towards its long-term goals for reducing its carbon footprint and making its operations more sustainable.
In the last six years, Welsh Water has increased the amount of energy it uses from renewable sources on its own sites from 2% to 20%.
The company has just announced a purchase agreement for the supply of green energy from a new multi-million pound organic waste treatment centre being developed in cooperation with Kelda Water Services and operated adjacent to the company’s site in Cardiff. It has also confirmed that it is investing 24 million in transforming the Five Fords Wastewater Treatment Works in Wrexham, North Wales, into an innovative Energy Park – the first of its kind in the industry to incorporate solar, advanced anaerobic digestion and hydro generation schemes at the site. The site will produce the equivalent energy to that used in 5,000 homes.
Without any shareholders, Welsh Water remains unique in the UK’s utility sector and ensures that any profit is reinvested directly into the company for the sole benefit of its customers.
Between 2010 and 2015, the company returned 136 million to customers through reduced bills, accelerated investment and increased social tariffs to help low income families. Welsh Water is the only water and sewerage company in England and Wales that is on track to deliver a decade of below inflation price increases by 2020 whilst also helping 56,000 customers who struggle to pay their bills.
Glas Cymru Chairman, Robert Ayling, said: “We are pleased to report that over the last six months, Welsh Water has continued to build on last year’s success when it delivered its best overall performance since being set up in 2001 as a non-shareholder company. Unlike other companies in the water industry, our unique operating model enables us to have a single-minded approach which is to achieve the highest standards at the lowest possible cost. Having made good progress in delivering against our targets on water quality, safeguarding the environment and customer service, this latest set of results show that the Glas Cymru model continues to work well for our customers.”
D r Cymru Welsh Water Chief Executive, Chris Jones, said: “We have continued to invest significantly in our services in recent months to achieve industry-leading levels of customer satisfaction and trust.
With our vision to earn the trust of our customers every day, our only focus is making decisions that always benefit customers and ensure value for money for customers now and for years to come.
Our latest investment ensures that we can continue to deliver the most essential of public services whilst we have a real lasting impact on the communities we serve.”
Notes to Editor
Customer service and bills
2015 is the sixth consecutive year of below-inflation price increases (on track to deliver a decade of below inflation price increases between 2010 and 2020).
Around 56,000 of our low-income customers benefit from assistance through our range of social tariffs. Social tariffs provide assistance to those who are struggling to pay their bills. This is a particular problem in our area as almost 160,000 of our customers spend more than 5% of their income on their water and sewerage bills (Experian, 2013/14).
Company received nearly twice as many written compliments (1,211) than written complaints (615) in our drinking water and wastewater business units.
The number of complaints received concerning the Retail Services business unit has increased due to certain transition issues when introducing a new billing system, replacing the previous system which was 25 years old. In the long term, the new system will enable us to provide a much wider range of service options to our customers
Welsh Water currently contributes around 1 billion a year to the Welsh economy and the company’s Developer Services Team plays an essential role every year in installing over 36,000m of water mains, taking responsibility for 15,000m of new sewers and responding to over 4,500 planning applications every year.
Financial results
Underlying profit of 25 million (2014: 43 million) – because we have no shareholders, this profit has all been reinvested into the business for the benefit of our customers. (The fall in underlying profit, from 43m to 25m, is the combined effect of an overall 1% reduction in the price we charge customers and a higher (non-cash) depreciation charge following the revaluation of our operational and infrastructure assets as at 1 April 2015. This revaluation has increased the value of our assets in the balance sheet but their useful lives remain unchanged – since the depreciation charge in the income statement represents the reduction in the value through the assets’ use over time, it is higher in the current period.)
136 million has been returned to customers over the five years to 2015 through absorbing the costs of operating the formerly private sewers (which transferred to Welsh Water’s ownership in October 2011), funding accelerated investment and by providing our current unique range of social tariffs.
Regulatory gearing – total net debt as a percentage of regulatory capital value – has fallen to 57% (down from 60% in March 2015 and 93% in 2001).
Operational performance
99.99% overall compliance with quality standards in some 250,000 tests at water treatment works, in the network and customers’ taps in the nine months to September 2015 (2014: 100%).
our wastewater treatment sites achieved 99.13% compliance with discharge permits (which regulates the amount of wastewater we can discharge into rivers and coastal waters)
97 pollution incidents to date (2014: 88).
A record 41 Blue Flags were awarded to bathing waters across Wales in 2015.
Company background
D r Cymru Welsh Water serves most of Wales, Herefordshire and parts of Deeside.
It is one of 10 water and sewerage companies in England and Wales.
Unlike other water companies, it does not have any shareholders.
Since 2001, it has been owned by Glas Cymru which was formed in April 2001 for the sole purpose of acquiring and owning Welsh Water.
It is a ‘company limited by guarantee’ and our business model is unique in the water industry.
It has no shareholders which means that all financial surpluses are reinvested in the business for the benefit of customers.
Glas Cymru’s constitution strictly limits its purpose to that of financing water assets in Welsh Water’s area of appointment and managing Welsh Water’s business so that high quality water and wastewater services are delivered at least cost to the communities served by Welsh Water.
As part of our 26 billion network of assets, we operate and maintain 27,500km of water mains, more than 30,000km of sewers, 838 sewage treatment works and 66 impounding reservoirs.
End
Further Information: Contact D r Cymru Welsh Water Press Office: 01443 452 452 or press@dwrcymru.com1
References
- ^ press@dwrcymru.com (www.investegate.co.uk)
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