Water & Wastewater Treatment

12 | February 2015 | WWT | www.wwtonline.co.uk Industry leader I f long-term thinking is a requirement for the water industry, then few industry leaders embody this more than Colin Skellett, the long-serving chief executive of Wessex Water. Having been at the helm of the Bath-based utility since 1988, he is excel- lently placed to put the challenges the industry faces today – such as the bill reductions we are about to see implemented under PR14 - into their proper perspective. With real-terms price reductions of 9% now fixed for 2015-20 - even more than the national average of 5% - Wessex has been set a consid- erable challenge by Ofwat's final determina- tion, but it is a challenge that Skellett feels the company is equal to. "I think the settlement is probably fair, but it's on the tough side of fair as far as the companies are concerned," Skellett tells WWT. "It's going to mean we're going to have to work a lot harder at trying to find further efficiencies, when we have already taken a lot of efficiencies out of the business. The challenge for us now is how we maintain our levels of service and Colin Skellett, Chief Executive, Wessex Water "The settlement is tough but fair... the challenge now is to maintain service and investment when income is going down." investment, and in some cases do more, at the same time as our income is going down. When you couple what's happening with prices with what's happening with inflation, this is not go- ing to be an easy time for businesses." While he agrees that the current price review represents the tightest squeeze on company income since privatisation – rivalled only by that in 2000 – he says that it has also been the most transparent, and commends the communication by Ofwat during the process. He believes that the new regulatory emphasis on Totex has opened the door for smarter, more cost-effective solutions to problems. He cites catchment management as one such solution, and it is a tactic which features heavily in Wessex's business plan, both for tackling issues of water quality and for flood prevention. The week a"er WWT caught up with Skellett, Wessex Water colleagues were due to be leading a meeting for key stakehold- ers in the Bristol & Avon catchment – and he says that it will be the first of a number of similar initiatives taking place this year. Incen-

• Cover