Wessex Water sees profit drop
Wessex Water has reported a 4 per cent drop in operating profit to £120.2 million in the first half of financial year 2015/16, blaming Ofwat's new regulated price controls.
This is £5.1 million lower than the £125.3 million operating profit reported in the first half of last year.
The company said its total turnover had decreased by £8.4 million from £270.6 million to £262.2 million in the first half of this financial year, because of a 5.9 per cent price cut imposed by Ofwat.
Wessex Water chief executive Colin Skellett said: “Our interim results show we retain our position as the leading water and sewerage company and that’s largely due to focused investment and our dedicated and professional workforce.
“Our staff are essential to our success and we have implemented initiatives to attract, develop and retain a wide range of skills and a diversity of employees that reflect the region we serve.”
Wessex noted that it had topped the league table for customer satisfaction for the first six months of 2015-16, continuing to be the best performing water and sewerage company in England and Wales by Ofwat.
The firm made a number of commitments for the 2015-2020 investment period to deal with issues such as customer-reported leaks, sewer flooding and local water abstraction.
These will be scrutinised and reported on by a new Wessex Water Partnership, comprising a dozen independent stakeholders such as Citizens Advice, Age UK, the Environment Agency and CCWater, and chaired by former water minister Dan Rogerson.
Skellett said: “We’re also continuing to help those customers who struggle to pay their bill by offering tailored affordability plans. Around 20,000 households have so far benefited from this help. All customers will have benefited by our average bills being around 5 per cent less in real terms from April 2015.”
-This article first appeared in Utility Week.
- 'Revolutionary' AOP treatment system trials prove a success Trials of a revolutionary treatment system that can remove water contaminates to within safe regulatory limits have been... Read More >
- Ofwat's Regina Finn resignation follows turbulent time The resignation of Regina Finn, chief executive of the water industry's economic regulator Ofwat, follows a turbulent few... Read More >
- Scientists develop grasses to capture rainfall Grasses that enable grassland soils to capture increased volumes of rainfall, thereby reducing the risk of flooding... Read More >
- New direction: Is the industry ready for direct procurement? Ofwat's continued aim to drive efficiency and value for customers will see the introduction of a new direct procurement... Read More >
- Analysis: Assessing lane rental's pros and cons While lane rental may be popular with many, Robin Hackett hears why the majority of utilities and contractors are fiercely... Read More >
- Opinion: Action needed on product specifications and skills BPF Pipes Group president Derek Muckle calls for a basic engineering and procurement skillset to set the standard for what... Read More >
- Bioresource data leads to focus on sludge quality The recent publication of data about the quantity and quality of sludge produced at water company wastewater treatment... Read More >
- Opinion: Why the EA needs to rethink its charges hike AD operators will have little time to adapt to the shock increase in charges proposed by the EA, writes Anaerobic... Read More >