Annual Report 2015 | Page 10

Annual Report 2015 As the UK water industry’s landscape changes, South Staffs Water remains committed to driving the delivery of exceptional customer service, high quality water and affordable bills. South Staffs Water is a water only company, supplying around 1.6 million customers in the South Staffordshire and Cambridge regions. The business bills customers for sewerage services on behalf of both Severn Trent Water and Anglian Water Services. A period of change This has been a year of challenge and change, during which the business has maintained its firm focus on delivering both high quality service and value for money. In December the business received its Final Determination from Ofwat, representing the culmination of the regulatory price review process (PR14) for the period 2015-2020. This will see bills reduce by 4% in real terms over the five year period with customers continuing to enjoy the benefits of one of the lowest bills in the industry. Levels of service in a number of areas will also increase in 8 addition to the business’ commitment to the community and affordability assistance for customers in need. In order to provide these important benefits to customers the business has, during the course of the year, had to make a number of difficult decisions as we sought to align our costs and performance with the new benchmark. These changes have included a reduction in manpower, the closure of the defined benefit pension scheme to future accrual as well as a variety of other changes to improve efficiency. We are especially grateful for the dedication of our staff as they have continued to seamlessly provide the vital 24/7 service to our 1.6 million customers in South Staffordshire and Cambridge throughout these challenging times. During the year to 31 December 2014, the Cambridge region met the required drinking water quality standard on 100% of all tests carried out, with the South Staffs region achieving a compliance rate of 99.98%. It has though become clear that the water quality performance at Seedy Mill treatment works requires investment. The business is committed to responding to the Drinking Water Inspectorate’s (DWI) legitimate criticisms about Seedy Mill and has already put in place a number of tactical mitigating actions ahead of agreeing a more strategic investment with the DWI which will restore the asset’s performance to the expected level and remove any immediate risk of quality failures. Similar investment is being actively considered in relation to Hampton Loade treatment works. We will work tirelessly to ensure customer interests continue to be protected in this key area of our operation.