Reflections

What has been achieved?

Diane McCrea

Wales Committee Meeting in Public

22 September 2015

Why CCWater?

• Set up by Water Act 2003

• Inaugurated 1st October 2005

• Jointly sponsored by Defra and WG

• Monopoly industry

What was different?

• Consistent approach to our work across

England and Wales

• Root cause analysis of complaints

• Evidence based policy

• Added value – comparisons across

companies to drive best practice

In Wales

• Emerging policy and strategy

statements from Welsh Government

• Early emphasis on sewer flooding

problems

• Spotlight on affordability

• Work in partnership, ‘critical friend’

0

100

200

300

000s of

written complaints

Robust on complaints

2007 2000

Year

2014

0

20

000s of

written complaints

CCWater pressure/negotiations

Robust on complaints in Wales

2007 2002

Year

2014

Written complaints 2014-15

Written Complaints

2014-15

• Dŵr Cymru Welsh Water fell by nearly 19% –

compared to an overall reduction of 13.4 per cent

across England and Wales.

• Dee Valley Water plunged for the fourth successive

year, this time by over 28%.

• Severn Trent Water – serving a small number of

customers in Wales - reported a reduction of more

than 22%.

Rebates to customers

• Over the past 10 years more than

£2.2m returned to customers in Wales

through rebates as a result of

complaints

• £1.4m of this consists of surface water

rebates

Customers at the heart of the

latest Price Setting - DCWW

-10

0

10With CCWater

1994 2009

1999

2004

2014

% Change in Bills

Year of Price Review

Before CCWater

Top ten reflections

• Recognised as the effective water

consumer representative body

• Secured a seat for customers at the

negotiating table

• Reductions in customers’ bills

• £2.2m returned in rebates

• More offerings on affordability and

assistance schemes

Top ten reflections

• Improved customer services

• Focussed on local issues

• Improved industry governance,

transparency and accountability

• Mixed use property disconnections

stopped

• Improvement in environmental

performance

Future challenges in Wales

• Continue to ensure companies deliver on

performance targets and specified ODIs

• Focus on affordability – delivering help to

those in most need through social tariffs

• To reduce the number of complaints about

water quality

• Monitoring the implementation of Silk

Commission Recommendations

Future challenges in Wales

• Monitor market reform in England for

business customers

• Ensure that non-eligible customers in Wales

get benefits from their supplier – better

customer service, value for money, ‘extra

attention’ to compare with any benefits in

England

Continue to work for consumers –

still more to do

© Dee Valley Water - 2015

Meeting the needs of our customers C.E.O. - Ian Plenderleith Head of Customer Services Wendy Jones Customer Accounts Mgr. Sue Jones

© Dee Valley Water - 2015

Company Performance 2010-2015

• Successfully delivered the capital programme approved by Ofwat for the

five year period to March 2015. • This was accomplished with a total spend of £34.1m – compared to a

capital programme allowance of £34m. Performance highlights: • CC Water Report recognition reduction in complaints and customer

service overall • Interruptions to supply – 0.17hrs per property served, top half in the

industry • Vulnerable customers -third highest penetration of WaterSure tariff in the

industry Performance lowlights: • Number of bursts up in 2014/15 post a continuous downward trend • Water Quality dominated by manganese and discolouration 2010-2013,

improving trend 2014 continuing into current Amp.

© Dee Valley Water - 2015

2015-2020 Meeting the needs of our customers

We are committed to: Provide excellent water quality

Minimise our environmental impact

Provide reliable & high quality customer

service

Provide a value for money service

© Dee Valley Water - 2015

2015-2020 Meeting the needs of our customers

• Ofwat approved 97% of the Business Plan submitted for the period 2015-2020.

• Ambitious plans to improve our supply network, systems and processes during the next five years.

© Dee Valley Water - 2015

Provide excellent water quality

• YTD Mean zonal compliance 99.95 • YTD Discolouration contacts reduction 413 to 267

year on year • Cleaning network exceeding our ODI target for

2015, 290km vs target 250km • Re evaluating capital investment agility in

changing priorities • Interruptions to supply YTD 0.098 on target for

ODI

© Dee Valley Water - 2015

Minimise our environmental impact

• Leakage performance on target for our ODI

• Down on electricity consumption through effective source management.

© Dee Valley Water - 2015

Provide reliable & high quality customer service • SIM YTD ranked 3rd • SIM Qtr 2 scores 4th overall, 1st for billing, 10th for clean

water • Operational impact of repeated bursts in one area affecting scores.

This vulnerable area has been brought forward on our capital improvement plan to be improved no later than April 2016.

• New internal SIM improvement group set up to focus on unwanted contacts, CC Water and other research, direct customer feedback, develop internal measures of tracking to ensure alleviation of customer frustration.

© Dee Valley Water - 2015

Complaints

• YTD no investigations required by CC Water • Continued downward trend in volume following the

performance of Amp 5.

0

100

200

300

400

500

600

700

800

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015/16ytd

Written Complaints

© Dee Valley Water - 2015

Provide a value for money service • Working closely with CC Water and our Customer Challenge Panel to ensure we represent the interests of our customers

• Maintaining 4th lowest bills in England & Wales • New project to introduce twice yearly billing to alleviate

estimated bills frustrations • Continue to offer payment plans, home visits & personal

advice • Social Tariff being introduced for 2016 pending support

from our customers • New web site in progress • Online Self service aspirations for Qtr 1 2016 • Staff training & development

© Dee Valley Water - 2015

Listening to the ‘voice’ of our customers

• Introduction of Rant & Rave • Currently scoring 4.5 or above.

… they helped me by reducing my money so that I

can afford to pay. Thank you

Excellent telephone manners and very helpful in solving my problem. Many thanks!

Very efficient friendly service…

© Dee Valley Water - 2015

FY14/15 Financial Highlights Underlying financial performance broadly consistent with the prior year:

Revenue:

£24.6m (+3.4%)

Adjusted profit from operations1:

£7.5m (+2.0%)

Adjusted earnings per ordinary share1:

75.3p

Full year dividend:

62.5p 0% inc Y o n Y

Net capital investment:

£5.6m AMP5: £34.1m

RCV:

£71.2m

© Dee Valley Water - 2015

Thankyou… Dee Valley – Your local friendly water company!

Performance Update

Chris Jones

Chief Executive

Water Services: 2010 - 2015

Measures 2010-’11 ‘11-’12 ‘12-’13 ‘13-’14 ‘14-’15

Safety of drinking water 99.97% 99.98% 99.98% 99.98% 99.99%

Customer contacts (per 1,000 population)

2.22 1.96 2.14 2.02 2.34

Water supply interruptions n/a 43 mins 53 mins 51 mins 23 mins

Leakage 199 ml/d 185 ml/d 184 ml/d 183 ml/d

179 ml/d

Service reservoir compliance 99.97% 99.97% 99.98% 99.95% 99.98%

✔

✔

✔

✘

✔

Wastewater Services: 2010 - 2015

Measures 2010-’11 ‘11-’12 ‘12-’13 ‘13-’14 ‘14-’15

Pollution incidents (cats. 1 & 2) 8 4 6 2 4

Self-reporting of pollution

incidents (%)

32 37 47 48 60

Sewer flooding properties 136 156 151 140 113

Repeat internal flooding 83 47 103 82 43

Health & Safety (RIDDORs) 26 21 24 23 20

✔ ✔

✔

✔

✔

Customer satisfaction (SIM): 2010 - 2015

60

65

70

75

80

85

2010 2011 2012 2013 2014

Methodology

changed

Overall performance vs 2014 -15 scorecard

0

20

40

60

80

100

120

2010/11 2011/12 2012/13 2013/14 2014/15

Best ever

performance

… but

priorities for

improvement

Lower operating costs:

-10 0 10 20 30 40 50

WSX

SW

SRN

TMS

YKS

UU

SVT

NRTH

ANG

DCWW%

- 8.2%

2014-15 opex compared to 2000-01

Bills

kept

below

inflation

60k on

social

tariffs

Water Services – 2014-15

Bacti

Compliance

at WTW

Service

Reservoirs

Treatment

Performance (disinfection index)

Leakage

Customer

minutes lost

More

compliments

than complaints

791 vs 682

100% 2013-14: 99.99%

99.98%

100%

179.5ml/d

23

2013-14: 99.95%

2013-14: 99.99%

2013-14: 183.7ml/d

2013-14: 51

Water Services – 2014-15: Challenges

Iron

compliance

99.41%

Taste,

appearance, odour

per 1,000

3.53

DWI

Mean zonal

compliance

99.94% 2013-14: 99.54% 2013-14: 3.36 2013-14: 99.97%

Wastewater Services – 2014-15

Pollution

incidents

Number WwTWs

failing numeric

consent

Internal sewer

flooding

112 5 43

More

compliments

than complaints

986 vs 587

Best ever

environmental

performance

2013-14: 12 2013-14: 124 2013-14: 82

Wastewater Services – 2014-15: Challenges

Llyn Padarn

NRW Environmental

Damage Notice

Loughor infraction

proceedings

CSOs & Event

Duration Monitoring

Customer satisfaction - 2014

3

3.5

4

4.5

WSX DCWW N YK SVT UU ANG SW TMS S

Billing: 1st

Waste: 3rd

Clean: 4th

Upper

quartile

after

Q2 2015

Business Plan (2015 – 2020)

Customer Price increase below inflation

Expand social tariffs

Cut water acceptability contacts

by 60%

Reduce sewer flooding by 25%

Compliance Reduce leakage by 8%

Cut pollution by 33%

Cut supply interruptions by 75%

Increase RainScape &

reduce spills

Cost £1.7 billion investment

Cut energy use on sites by 5%

Cut Opex by 18%

Cut Capital costs by 15%

Cut Retail cost by 32%

Business Plan (at 2014 - 2015 prices)

380

390

400

410

420

430

440

450

460

470

480

10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20

Average household bills 2010-2020

Water

Waste

Energy efficiency

£1.7bn investment

Delivery Plan for 2015 - 2020

Most trusted

provider of

essential services

by 2020…

… by increasing

customer trust

and

colleague pride

Measuring Customer Service - 2015

Rant & Rave

- Pilot launched in September 2015

- Over 2,000 customers targeted so far

- Average score from customer is 8.3 (from 0 to 10)

- 72% - ‘Good’ Sentiment

- 52% - Net Promoter Score

iLab

SMART network

RainScape

WaterSource

Weed Wiper

Innovation

Learning from

leading retailers

(LV, giffgaff,

British Gas,

Transport for

London)

International

Benchmarking

(Oasen Drinkwater,

Holland /

Cloudburst Mgt,

Denmark)

Drinking Water Quality in Wales

an overview

Frank White

Liaison Inspector for Wales

How does Wales compare to England?

• Public supplies

• Private supplies

• Ongoing challenges

The position today

• Public supplies

– Both Wales and England at 99.95

• as expected due to stricter lead standard becoming law.

– 0.05% of tests not meeting standards in 2014 compared to 1.6% in 1991.

• Private supplies – ongoing concern about quality and safety but some early signs of improvement.

– 7.0% of tests not meeting standards in 2014 compared to 9.6% in 2010.

The position today

Public supplies by regions England 99.95% Wales 99.95%

Declined

Declined

Declined

Overview of compliance 1990 = 99.00% : 2014 = 99.95%

Significant challenges remain

Wales public supplies still have issues, although investment e.gs, DCWW Go to Green, DVW new works at Llwyn Onn help

Dŵr Cymru Welsh Water – AMP6

Company Business plan in Dec 2013 set some challenging targets to 2020 - 99.99 % compliance for Drinking Water Quality and 2.9 per 1000 contacts for Customer Acceptability. During the price review process Ofwat challenged all companies against a number of comparative measures.

DCWW has accepted Ofwat’s Final

Determination with performance commitments set at 100%

compliance for drinking water quality and 1.23 per 1000

contacts for customer acceptability.

Investment is working (England and Wales)

Number of brown, black or orange discoloured water contacts

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Still work to do

2014: Wales

• 295 failures at consumers taps from household plumbing.

• 495 events, 225 significant or serious requiring investigation.

DWI Audit performance !

Conclusions

• Companies have successfully invested in and modernised treatment works e.g., Cwellyn, Llwyn Onn “go to green programme” (DCWW)

• Companies have renovated or replaced over 2500km of mains in Wales

• Innovation is being used, e.g., Ice pigging, new conditioning regimes – Its not always a capital solution

• Significant challenges remain