Wessex Water’s operating profit decreased as customer bills were reduced by 5% from 1 April 2015, according to the company's newly published end of year results for 2015-16.
The latest set of financial results for 2015-16 show that turnover decreased from £540.3m to £520.8m, and that profit before tax decreased from £171.8m to £159.6m.
Wessex said that despite a challenging price review it had commenced an ambitious five-year £2 billion programme of work to maintain and improve water and sewerage services.
The company once again had the fewest number of complaints of all water and sewerage companies and maintained its number one position in providing the best customer service.
Commenting on the results, Chief Executive Colin Skellett said:
"2015/16 was the first year of a new five-year price control. Our focus is on delivering the outcomes our customers and local communities want. We have made an excellent start and performed well against our commitments, achieving industry-leading customer service and environmental performance."
Work has started on a number of major construction projects during the period, including a £39m scheme to improve bathing water quality in the Burnham-on-Sea area to meet tighter standards. Work also continued to build a new water supply grid - the largest project of its kind - that will provide greater resilience and better water quality to meet future demands and the impact of climate change. The project is on track to be completed next year.
Wessex Water is also pursuing innovative approaches are being used to tackle environmental issues, such as river water quality in the Poole Harbour catchment where Wessex Water is working with farmers to reduce nitrate runoff into the River Frome through the first nitrogen offsetting trial in the UK.The company is also engaged in a joint research programme with the University of Bath, launching a water innovation and research centre to explore new ways of solving problems.
To ensure Wessex Water delivers the commitments made in its five-year investment plan, the Wessex Water Partnership has been formed, independently chaired by former water minister Dan Rogerson. The partnership will provide advice and guidance on customer engagement, service, affordability and tariffs in preparation for the next business plan.
Wessex Water said the company is focussed on retaining existing and attracting new skills into its business. Earlier this year the company launched its biggest ever recruitment drive for new apprentices offering opportunities for a wide range of roles.
Water industry facing fundamental change with moves to greater competition
Colin Skellett continued:
"We can only continue to deliver the excellent service to our customers through the knowledge and skills of our employees and the quality of the assets we manage and operate. It is essential we have the right skills for the future.
He added:
"The water industry is approaching a fundamental change with moves to greater competition. We support these changes, but the key measure of their success will be what they deliver for customers."
In preparation for non-household retail competition which commences 1 April 2017, Wessex Water, together with Bristol Water, has created a new company water2business. Wessex Water said the new company will offer high levels of customer service for businesses in the region and outside, in a new competitive market.