Glas Cymru - the ‘not-for-profit’ company that owns Welsh Water on behalf of customers has published its latest financial results. The company said it had achieved good overall progress in the six months to September 2010, maintaining its strong financial position, whilst reducing customer bills and investing heavily to improve customer service.

Highlights for the half-year include:

* The average household bill for Welsh Water’s customers was £398 which is £4 lower than the previous year.  Over the next five years, Welsh Water’s average household bill is set to fall by around £30 in real terms as a result of further improvements in both operational and financial efficiency.
* Welsh Water’s unique range of special tariffs and Customer Assistance Fund are now benefiting over 32,000 of its most vulnerable customers who are facing financial hardship, a marked increased on a year ago (2009: 22,000).
* New water treatment works have been commissioned at Cwellyn in Snowdonia (at a cost of £13 million), Bryn Cowlyd, Crai, Court Farm, Mynydd Llandygai and Rhiwgoch, providing the most up to date treatment processes to protect the public drinking water supplies to some 500,000 customers. This is part of a £200 million water treatment investment programme.
* A new operational control centre has been opened in Cardiff.
* Capital investment of £117 million (2009: £170 million).
* The level of net debt has been reduced below 70%, achieving the target to reduce gearing to this level from the 93% level at which it stood when Welsh Water was acquired by Glas Cymru in May 2001. As a result of the strong financial position, the company has been able to redeem £113 million of more expensive junior bonds, which will save customers some £4 million a year in future interest payments.

Glas Cymru Chairman, Bob Ayling, commented: “I am very pleased that Welsh Water’s customers are getting even better value for money, with lower bills on average and continuing high levels of investment to protect the quality of drinking water and the reliability of the service we provide to customers every day.

It has been a period of considerable change for the business with some 1,600 colleagues transferring into the company from our former service providers.  It is a great credit to the dedication and professionalism of all the people who work for Welsh Water that overall service standards have remained high during this major transition.”
The company has the best credit ratings in the water sector, with the senior bonds being rated A by Standard and Poor’s and Fitch Ratings, and A3 by Moody’s.