Wessex Water is on course for another year of top performance, according to its interim results for six months to 30 September 2015 published this morning – the firm has again been identified as the best performing water and sewerage company in England and Wales in all areas of customer service by regulator Ofwat.

Results for the half year showed a decrease in turnover of 3.1% - down £8.4m from £270.6m to £262.2m, while profit after tax increased by £13.0m from £71.1m to £84.1m. Operating profit decreased by £5.1m from £125.3m to £120.2m, while profit after taxation increased by £13.0m from £71.1m to £84.1m. Total turnover decreased by £8.4m from £270.6m to £262.2m. Wessex Water said that regulated tariff turnover decreased by £8.1m of which £10.3m was due to a 5.9% price cut imposed by Ofwat, partially offset by November RPI of 2.0%.

Operational costs decreased by £3.6m from £95.2m to £91.6m. The water company said that whilst there were upward pressures on costs due to inflation and new obligations, these were more than offset by the delivery of targeted savings coming from the control of chemical and energy consumption, power prices, the amount provided for bad debts and a reduction in the company’s workforce at the start of the year.

Referring to new development in the region, where large new developments in North Bristol, Weston-super-Mare and other regional towns are starting to progress beyond planning and into early construction phases, Wessex said it was working closely with property developers in ensuring timely provision of the required infrastructure.

Commenting on its approach to tackling worsening raw water quality, Wessex said it was continuing with its catchment management strategy which will see the programme expanded to 20 sources during AMP6.    

Gross capital investment for the six months totalled £87.4m which was very similar to last year. On capital investment, major process extensions and maintenance work at Sutton Bingham, which serves the Yeovil area, were undertaken last year. The £13m project includes improved additional treatment processes to deal with pesticides, taste and odour and manganese.   

At Highbridge the utility has started construction of an ultraviolet disinfection process to treat discharges from stormwater storage tanks - the project is due for completion ahead of the programme date of 31 March 2016.

 During the course of AMP6 Wessex is also installing event duration monitoring (EDM) in the vast majority of its combined sewer overflows (CSOs) by 2020 more than 30 EDM sites have been installed in the previous six months and the firm is aiming to install a further 70 by the end of the year.  During the first half of the year engineering appraisals have also been carried out on four schemes to improve levels of ammoniacal nitrogen discharged from STWs at Glastonbury, Grittleton, Wanstrow and Kilmersdon.

Flooding - liaison meetings with local authorities increasing in frequency

On flooding issues, Wessex Water said it is working with the local authorities as they produce surface water management plans and strategies to review flood management.  The liaison meetings are increasing in frequency and the water company is being consulted more than before, together with the planning authorities responsible for approving sustainable solutions. Wessex is also contributing towards partnership schemes where it has a vested interest.  

£230m water supply grid programme on track for completion in 2018

Wessex Water said its biggest AMP6 project, the eight-year £230m water supply grid programme remains on track for completion in 2018. All the pipelines for the trunk main system from Corfe Mullen to Salisbury have now been installed, with a number of new storage tanks also in placeand pumping stations at Monkton Deverill and Sturminster Marshall substantially completed.  The major redevelopment of Codford water treatment works is also well underway.  

On energy and carbon, Wessex Water is investing in upgrades to sludge digestion facilities to increase the proportion of sludge treated using the anaerobic digestion process to generate renewable energy. This includes the installation of advanced anaerobic digestion at Trowbridge and Taunton and additional digestion capacity at Berry Hill, Bournemouth.  

The plant at Trowbridge has been installed and commissioning of the new plant is approaching completionand the company is now exporting power from the site.

On carbon reduction, Wessex Water’s net greenhouse gas emissions for the period stood at 68 kilotonnes carbon dioxide equivalent, compared with 75 kilotonnes in the first six months of 2014-15. The main reasons for the reduction are attributed to the company’s ongoing energy efficiency work, the moderate weather conditions during the period and the fact that the carbon dioxide intensity of UK grid electricity has fallen from 537g per kWh to 500g per kWh.

Dan Rogerson to chair new Wessex Water partnership

Wessex Water’s performance commitments for the 2015-2020 investment period 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.  Dan Rogerson, former water minister, has been appointed to chair the partnership that will hold Wessex Water to account with effect from January 2016.

Commenting on the results, 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."