Utility Week

UTILITY WEEK | 21ST - 27TH SEPTEMBER 2018 | 7 News "Around 90 per cent of customers are satisfied with the services they get" T he water industry in Eng- land unveiled its Mani- festo for Water earlier this month, highlighting company proposals for a major invest- ment programme to improve services and investment. The manifesto outlines a 16 per cent cut in leakage, an above 4 per cent real-term reduction in average bills, and a 90 per cent increase in the amount of customers receiving financial support from their water company. It also includes a new pro- gramme for helping the environ- ment, which will see 8,000km of rivers cleaned and improved. Customers currently pay around £1 a day for world-class drinking water, reliable sewer- age services and protection of the environment. Thanks to the sector's performance, around 90 per cent of customers are satisfied with the services they get, and 86 per cent of the public say they trust their water company. A good record While the water industry's record over the past 30 years – cutting leakage, keeping bills affordable, improving water quality, and cleaning up rivers – has been good, the business plans offer to take performance to another level. The ambition highlighted in our manifesto shows an indus- try that is dynamic and passion- ate about delivering real benefits for customers, the environment and the country as a whole. The industry has set out an ambi- tious vision for the future of water that puts customers right at the heart of everything that companies do. This approach is part of the industry's five-year price review cycle. Every five years, water companies in England and Wales set out how they plan to meet their responsibilities in providing the most essential of public services. This is a major exercise in finding the right balance between keeping bills afford- able, investing in better services and taking action to improve the environment. This approach has seen water companies invest £150 billion over nearly 30 years – equiva- lent to the cost of building a new Wembley Stadium every month over that period. High expectations But in a world of high customer expectations and where the pressures of climate change and population growth are challenging the ability to deliver now and in the future, companies are committed to do much more. That is why they have car- ried out their most extensive engagement with customers to date in preparing their plans for 2020-25, consulting more than 5 million customers as they shape their plans to reflect the priorities of the communities they serve. Each company's plan varies to fit their local require- ments, and all plans are subject to confirmation from Ofwat. But while the emphases vary, the key themes are common – bills, resilience, environment, innovation. Taken together, the plans summarised in our Manifesto for Water demonstrate how companies can deliver against the high standards expected of an essential public service. Opinion Michael Roberts Chief executive, Water UK reports into pollution incidents. Liz Barber, Yorkshire Water's director of finance, regu- lation and markets, tells Utility Week: "It's important to be honest about our perfor- mance – good and bad." CCWater's Smith says: "Leakage is an issue that really matters to customers so we think it's a shame that more companies have not shown more ambition and targeted going beyond the 15 per cent reduction the regula- tor Ofwat has set out. Companies should be taking action now as part of a more ambi- tious long-term vision to cut leakage." Nicci Russell, managing director of effi- ciency champions Waterwise, says she is looking forward to reading the water effi- ciency ambition in the plans. "On a first pass it plays much more of a role in the core plan and narrative of some companies than oth- ers, but we're optimists." Ofwat senior director David Black says: "Over the coming months, we'll be scrutinis- ing each and every plan in detail to ensure they are robust enough to deliver a high quality, affordable and resilient service to customers in the years 2020-25 and beyond. "As we test each plan, we'll be looking for evidence of ambition and innovation and crucially, we'll want to see customers and the environment put to the fore as never before." While it will be a "fast-track" ticket for some companies, it will be a bumpy ride for others with ups and downs. The rollercoaster journey of PR19 is just getting started. THE WATER COMPANY PROPOSALS BEFORE OFWAT Change in bills Daily use per person Leakage (litres) reduction Water and wastewater companies' proposals Anglian Water <1% 131 17% Dwr Cymru 5.0% 139 15% Hafren Dyfrdwy 2.2% 151 15% Northumbrian Water Water – 12% 136 16% Wastewater – 14% Severn Trent Water 5.0% 129 15% South West Water South west area – 11% 129 15% Bournemouth area – 9% Southern Water >3% 120 15% Thames Water No change - 136 15% United Utilities 10.5% 137 15% Wessex Water 4% 128 15% Yorkshire Water 3.5% 119 25% Water-only companies' proposals Affinity Water 2% 129 15% Bristol Water 06% 135 15% Portsmouth Water 04% 135 15% South East Water No change - 140 14% South Staffs Water 11% 130 23% SES Water 6% 136 15% Source: Ofwat

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