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Welsh Water posts £6.6m profits

Welsh Water has announced pre-tax profits of £6.6 million for the year ending 31 March 2012 and pledged an extra £100 million of investment over the next three years.

The company said it was able to accelerate projects not originally planned for the current 5-year regulatory cycle due to “financing efficiency benefits” of its unique not-for-profit model. It is simultaneously committed to cutting customer bills in real terms.

Welsh Water met or beat 15 out of 18 performance targets, narrowly missing those for sewer flooding and wastewater treatment compliance.

Chairman Bob Ayling said: “Our ambition is to deliver the best possible outcomes for our customers, supplying drinking water of the highest quality and safeguarding the environment that we look after on behalf of the communities we serve. We also hope to show that the unique business model we have established for the water industry in our region is working for our customers. I am pleased to report that we have made significant progress in the year towards these objectives.”

In October 2011, Welsh Water’s sewerage network roughly doubled as it, in common with other water companies in England and Wales, adopted private sewers. The firm incurred associated costs of £6.9 million, approximately £2.30 per customer.

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