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.
- Mismanagement of water behind Syria conflict The conflict in Syria is the culmination of decades of mismanagement of water and land resources, according to an academic... Read More >
- Scottish Water seeks Tier 1 contractors for wastewater deal Scottish Water is seeking up to eight main contractors to help deliver its wastewater infrastructure programme between... Read More >
- Multi-utility regulator could be created in an independent Scotland The Scottish government is considering adopting a multi-utility regulator covering electricity, gas and water if the... Read More >
- Air Quality and the MCPD: Something in the Air Air quality regulations that come into force next year are making water and wastewater companies reconsider the role of... Read More >
- Plastic pollution – what was the tipping point? Despite years of research, news stories concerning plastics and the pollution of the marine and water environment have... 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 >