Our annual performance review for 2019

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Our values in action

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Who we are

We supply 160 million litres of clean water each day to 712,000 people in east Surrey and parts of West Sussex, west Kent and south London.

Our highlights of the year

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What we do

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Focusing on our customers

Hear from Renee in Redhill

Our performance

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What we do

We supply 160 million litres of clean water each day to 712,000 people in east Surrey and parts of West Sussex, west Kent and south London.

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85% of our raw water comes from underground sources (groundwater) and 15% from river sources.

We collect

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To make sure we maintain high quality drinking water for our customers, our water quality is continuously monitored at all our treatment works.

We clean

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We have 31 operational service resevoirs and water towers.

We store

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24 pumping stations pump water to our customers through 3,500 kilometres of pipes.

We distribute

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Each year we carry out 120,000 tests on around 13,000 samples at every point from source to tap.

We sample

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2019 highlights

Despite challenges like the hottest summer on record, we met the majority of our annual performance commitments, including our leakage target for the 20th successive year

Our water continues to be of the highest quality and we made good progress towards ensuring every customer can be supplied by more than one treatment works

We have made significant capital investment, including the completion of our major refurbishment of Woodmansterne Treatment Works

We moved to using 100% renewable electricity, installed more solar panels and electric vehicles joined our fleet

Our Business Plan for 2020 to 2025 – developed in partnership with our customers and including several industry leading measures – was submitted to Ofwat

We significantly reduced our gearing level to achieve a better balance between debt and equity

Our performance

Our overall aim

Continue to be a well-run, respected and successful business.

How have we done?

Aim 1

To provide a reliable and sufficient supply of safe, high quality drinking water.

How have we done?

Aim 2

Offer good value for money and keep bills at a fair and reasonable level.

How have we done?

Aim 3

Increase the resilience of our network to drought, flooding and equipment failure.

How have we done?

Aim 4

Deliver consistently high levels of service.

How have we done?

Aim 5

Reduce our impact on the environment while seeking to make a positive contribution to its quality.

How have we done?

Our values in action

Delivering

despite challenges

Delivering

despite challenges

Extremes in weather can have a big impact on the water industry and the summer of 2018 saw record temperatures and soaring water consumption across the country – about 35% higher than normal which is about an extra 40 million litres of water.

40 million

An extra 40 million litres of water put into supply on 8 July 2018

20 years

We have met our leakage target for the last 20 years

Getting ready

for the

future

Getting ready

for the

future

It is vital that we take a long-term view when planning our water resources to make sure the decisions we make today are the best ones for tomorrow.

10%

At least 10% of customers will be on a smart water meter by 2025 and this will increase if technology advances support a larger roll-out

15%

We will reduce leakage by 15% by 2025

Transparency

and governance

Transparency

and governance

We have always placed great emphasis on being a responsible, accessible local company, trusted to provide an essential public service.

11 members

Our Customer Scrutiny Panel includes 11 members whose function is to act as a champion for our customers and challenge us in meeting their priorities

3

We have 3 independent non-executive directors on the Board bringing a wealth of experience from outside the water sector

Resilience

in the round

Resilience

in the round

Providing resilient services has been a key feature of our 150-year history. Rarely do our customers experience breaks in their supply - we have the lowest rate of burst mains in the industry, supply interruptions are also very low and our water has consistently reached the highest quality standards.

61 %

We have lowered our gearing to c.61% to achieve a better balance between debt and equity which makes us more financially resilient

28

There are 28 risks on our Company risk register

Being a


responsible

business

Being a


responsible

business

As a small local company deeply embedded in the communities we serve, we are not seen as just a supplier of water and we don’t want to just deliver great service for customers – we want to play an active part in improving the areas we are privileged to serve.

13,000

Each day we use enough electricity to power 13,000 homes

4,000

Switching to renewable energy is the equivalent of taking 4,000 cars off the road

Developing our


people to deliver for


our

customers

Developing our


people to deliver for


our

customers

Our people are our greatest asset and we want to continue to create an environment that we all feel proud to be a part of to make our business an even better place to work.

300 employees

We have 300 committed and skilled employees

9 years

Our average length of service is 9 years

Our overall aim

Measures

2019 performance

2018 performance

Target/target limit

Target achieved

Financial support to charities and local community

£18,839

£13,224

Increase support

Financial health

Achieved

Achieved

Achieve budget

Employee satisfaction

62.0 points

62.8 points

>70 points

Health and safety incidents

4

5

3

Measures

Performance in 2019/2018

Financial support to charities and local community

£18,839

2018: £13,224
Target: increase support

Financial health

Achieved

2018: Achieved
Target: Achieve budget

Employee satisfaction

62.0 points

2018: 62.8 points
Target: >70 points

Aim 1

Measures

2019 performance

2018 performance

Target/target limit

Target achieved

Supply interruptions over three hours (average hours per property)

0.268

0.054

0.20

Number of bursts

255

214

290

Overall water quality

99.97%

99.98%

100%

within regulatory tolerance

Taste, odour and discolouration contacts

388

365

350

Water softening

Delivered

On track

Deliver programme

Security of supply index

100%

100%

100%

Measures

Performance in 2019/2018

Supply interruptions over three hours (average hours per property)

0.268

2018: 0.054
Target: 0.20

Number of bursts

255

2018: 214
Target: 290

Overall water quality

within regulatory tolerance

99.97%

2018: 99.98%
Target: 100%

Taste, odour and discolouration contacts

within regulatory tolerance

388

2018: 365
Target: 350

Water softening

Delivered

2018: On track
Target: Deliver programme

Security of supply index

100%

2018: 100%
Target: 100%

Aim 2

Measures

2019 performance

2018 performance

Target/target limit

Target achieved

Proportion of customers who believe their bill is not good value

7.8%

9.0%

Customers on our Water Support Tariff

10,401

8,150

5,000

Bad debt as a percentage of turnover

1.01%

0.64%

Measures

Performance in 2019/2018

Proportion of customers who believe their bill is not good value

7.8%

2018: 9.0
Target:

Customers on our Water Support Tariff

10,401

2018: 8,150
Target: 5,000

Bad debt as a percentage of turnover

1.01%

2018: 0.64%
Target:

Aim 3

Measures

2019 performance

2018 performance

Target/target limit

Target achieved

Water restrictions

0

0

0

Proportion of properties supplied by more than one treatment works

56%

36%

56%

Measures

Performance in 2019/2018

Water restrictions

0

2018: 0
Target: 0

Proportion of properties supplied by more than one treatment works

56%

2018: 36%
Target: 56%

Aim 4

Measures

2019 performance

2018 performance

Target/target limit

Target achieved

Customer satisfaction with their water service

91.5%

92.0%

90.0%

Service Incentive Mechanism (SIM) score

80.5 points

78.7 points

87.4

Number of complaints (per 1,000 properties)

8.0

9.8

6.80

Measures

Performance in 2019/2018

Customer satisfaction with their water service

91.5%

2018: 92.0%
Target: 90.0%

Service Incentive Mechanism (SIM) score

80.5 points

2018: 78.7 points
Target: 87.4 points

Number of complaints (per 1,000 properties)

8.0

2018: 9.8
Target: 6.80

Aim 5

Measures

2019 performance

2018 performance

Target/target limit

Target achieved

Leakage

24.1 MI/day

24.2 MI/day

24.1 MI/day

Environmental education programme

11,798 people

9,551 people

9,500 people

Customer usage reductions through metering

162.6 litres*

158.8 litres*

157.7 litres*

within regulatory tolerance

Greenhouse gas emissions (kgCO2eq/Ml)

91

376

525

Pollution incidents

0

2

0

Measures

Performance in 2019/2018

Leakage

24.1 MI/day

2018: 24.2 Mi/day
Target: 24.1 MI/day

Environmental education programme

11,798 people

2018: 9,551 people
Target: 9,500 people

Customer usage reductions through metering

within regulatory tolerance

162.6 litres*

2018: 158.8 litres*
Target: 157.7 litres*

Greenhouse gas emissions (kgCO2eq/Ml)

91

2018: 376
Target: 525

Pollution incidents

0

2018: 2
Target: 0

* Per person per day