Reflections What has been achieved? Diane McCrea Wales Committee Meeting in Public 22 September 2015
Why CCWater? Set up by Water Act 2003 Inaugurated 1 st 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
Robust on complaints 300 000s of written complaints 200 100 0 2000 2007 2014 Year
Robust on complaints in Wales 20 CCWater pressure/negotiations 000s of written complaints 0 2002 2007 2014 Year
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 Before CCWater With CCWater % Change in Bills 0 1994 2004 2009 2014-10 1999 Year of Price Review
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
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 4 th 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. 800 700 600 500 400 300 200 100 Written Complaints 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015/16 ytd 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 4 th 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. Excellent telephone manners and very helpful in solving my problem. Many thanks! Very efficient friendly service they helped me by reducing my money so that I can afford to pay. Thank you 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 operations 1 : 7.5m (+2.0%) RCV: 71.2m Net capital investment: 5.6m AMP5: 34.1m Adjusted earnings per ordinary share 1 : 75.3p Full year dividend: 62.5p 0% inc Y o n Y Dee Valley Water - 2015
Thankyou Dee Valley Your local friendly water company! Dee Valley Water - 2015
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 85 80 75 70 65 60 2010 2011 2012 2013 2014 Methodology changed
Overall performance vs 2014-15 scorecard 120 100 80 60 40 20 Best ever performance but priorities for improvement 0 2010/11 2011/12 2012/13 2013/14 2014/15
Lower operating costs: % DCWW 2014-15 opex compared to 2000-01 - 8.2% ANG NRTH SVT UU YKS Bills kept below inflation 60k on social tariffs TMS SRN SW WSX -10 0 10 20 30 40 50
More compliments than complaints 791 vs 682 Water Services 2014-15 Bacti Compliance at WTW 100% 2013-14: 99.99% Service Reservoirs 99.98% 2013-14: 99.95% Treatment Performance (disinfection index) 100% 2013-14: 99.99% Leakage 179.5ml/d 2013-14: 183.7ml/d Customer minutes lost 23 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 More compliments than complaints 986 vs 587 Best ever environmental performance Pollution incidents Number WwTWs failing numeric consent Internal sewer flooding 112 5 43 2013-14: 124 2013-14: 12 2013-14: 82
Wastewater Services 2014-15: Challenges Llyn Padarn NRW Environmental Damage Notice Loughor infraction proceedings CSOs & Event Duration Monitoring
Customer satisfaction - 2014 4.5 4 3.5 3 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) 480 470 460 450 440 430 420 410 400 390 380 Average household bills 2010-2020 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 1.7bn investment Water Waste Energy efficiency
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
Innovation ilab SMART network RainScape WaterSource Weed Wiper International Benchmarking (Oasen Drinkwater, Holland / Cloudburst Mgt, Denmark) Learning from leading retailers (LV, giffgaff, British Gas, Transport for London)
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
Public supplies The position today 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 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014
2014: Wales Still work to do 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