Wessex Water has published  its latest financial results for the financial year ended 31st March 2010. The financial results for the year show that turnover increased from £420.6m to £438.2m, and that profit after tax increased from £93.3m to £112.3 million.

The company said that despite challenging economic conditions it had successfully delivered its AMP4 2005-2010 investment programme and out-performed the assumptions made in the 2004 price determination. It had produced a “solid set of financial results” over the past year with profit before tax rising to £152.9 illion set against a background of continuing recession in the UK, and ongoing instability in the world’s financial markets.

Over the last five years Wessex Water’s operating costs were 9% lower than Ofwat assumed and the capital investment programme has been delivered for 15% less than was originally allowed for.

During the year Wessex Water also introduced internal trading within operational business units, including the creation of waste to energy business GENeco, the aim being to give greater focus and understanding of costs and to deliver efficiencies.

Water consumption by commercial and industrial customers decreased and the slowdown in new development significantly reduced the requirement for new water mains and sewers. In addition to this bad debt costs continued to increase.

Energy a continuing focus

2009-10 saw an increase of 68% in renewable energy generation, with self-sufficiency in energy achieved at the company’s largest works at Avonmouth in Bristol. The company intends to achieve a further reduction in its carbon footprint during AMP5 by increasing the use of sewage sludge to generate renewable energy.

Wessex currently has 200 live projects on its energy efficiency database, the majority of which concern sewage treatment. Wessex is also implementing a thorough review of the operation of its biological aerated filter plants and conducting an advanced process control project at Holdenhurst STW (its second largest sewage treatment works).

Reviewing the efficiency of an entire treatment works’ process train has already delivered benefits at Kingston Seymour; recent work at the site on pumping, secondary and tertiary treatment has reduced power consumption to 2004 levels.

Chairman Colin Skellett said:

“It has been a financially difficult year for us, but through the dedication of our staff, who, were fundamental in ensuring we operated efficiently, we were able to continue delivering the best water and sewerage services in the country.

“Once again our customer service levels have been outstanding, topping surveys and assessments set by industry regulator Ofwat.

“We also had no category one or two pollution incidents for the second year running – a first in the water sector.”

Mr Skellett said that future investment was customer driven; removing more homes from the flooding register, improving drinking water quality and reducing the likelihood of customers being left without water by renewing ageing pipes.

He added:

“We are also investing heavily in environmental improvements at our sewage treatment works to meet tougher standards.”

Among the schemes planned by Wessex Water during AMP5 is the development of a 112km regional water supply grid that will take eight years to complete at a cost of £289 million.

It will involve connecting a major part of the water supply network from the north of Bournemouth, through Salisbury and towards Bath. The grid project will also include new service reservoirs and building new or refurbishing pumping stations.

The new grid will ensure that customers have at least two sources of supply and also address deteriorating raw water quality.