Dŵr Cymru Welsh Water has today announced its half-year results and the launch of its new social tariff ‘HelpU’ aimed at helping over 100,000 of the company’s most disadvantaged customers from April 2015.

 Average household incomes in the area served by Welsh Water are almost 13% lower than the rest of England and Wales with some substantive areas being 20% below the average. It is estimated that around 160,000 customers struggle to afford their water bill because it exceeds 5% of their household income.

Welsh Water’s new ‘HelpU’ tariff – which will offer annual savings of up to £250 or 55% on the average household bill - has been developed with support from the independent consumer watchdog CCWater, the Welsh Government and Community Housing Cymru. Details of how to apply for the tariff will be announced in early 2015.

Independent research shows that over 75% of the company’s customers support the new tariff which will help a record number of its customers who genuinely struggle to pay their water bills.

The non-shareholder water company already helps around 63,000 of its disadvantaged customers – compared to an estimated 70,000 customers in England who benefit from such schemes from their own water companies.  All companies in England provide the national social tariff Watersure, which caps bills for around 70,000 metered customers who are on means-tested benefits.

 Welsh Water plans to nearly double the number benefitting from this assistance over the next five years.

Without any shareholders, the company, which provides water and wastewater services for 1.4 million customers across much of Wales, Deeside and Herefordshire, is unique in the UK’s utility sector and ensures that all its gains go to customers.

Results show best-ever operational performance

The new social tariff is confirmed as Welsh Water publishes its latest half-year financial report which shows that the non-shareholder company invested £174 million in capital projects and essential infrastructure in the six months to September 2014 – nearly £1 million a day.

The half-year report shows strong overall performance for the six months to September 2014 with the company providing high quality water and wastewater services and continued improvement to customer service, built on a strong financial foundation and its best ever operational performance in 2013-14.

Welsh Water also confirmed that a further £170 million will be invested between October 2014 and April 2015 bringing the total investment in its services between 2010 and 2015 to a record £1.5 billion - the equivalent of over £1,000 per household.

Examples of key investments over the first six months of this financial year include:

• strengthening the resilience of drinking water supplies to over 62,000 customers by upgrading and commissioning water treatment works in Llyn Conwy (£12 million), Alaw (£11 million) and Cefni (£17 million) in North Wales – part of a wider £120 million investment in 12 water treatment works;
• helping to reduce operating costs and lower the firm’s carbon footprint by developing its renewable energy portfolio (completing hydro projects at Upper Cowlyd in Snowdonia (200kW) and Cefn Dryscoed in the Upper Neath Valley (60kW), and a solar photo-voltaic project at Hirwaun (110kW));
• becoming more efficient and cutting our carbon footprint by launching the Energy Park Project at Welsh Water’s  largest site in North Wales, Five Fords near Wrexham, which will lead to multiple renewable energy technologies located at this one site (including Gas to Grid and 20,000 solar panels);
• reducing the risk of local sewer flooding which could adversely impact customers and environment through our £15 million investment in Llanelli and Gowerton which is aimed at removing more surface water from the combined sewer network;
• improving the local urban environment  by launching a £2 million sustainable urban drainage system (SUDS) or RainScape scheme near Cardiff city centre, called ‘Greener Grangetown’, in collaboration with the City of Cardiff Council and Natural Resources Wales.

Commenting on the results, Glas Cymru Chairman, Bob Ayling, said: 

“We are pleased to see yet further improvements in our business: customer service continues to be amongst the best in the sector; operating performance is up; profits are up and will be retained within the company for the benefit of customers; borrowing costs are down; our gearing is stable and our credit rating is the best in our sector.”