Annual Report 2016 STRATEGIC REPORT Ensuring every one of its customers experiences excellent service, alongside a reliable, high quality water supply and affordable bills, is at the heart of everything South Staffs Water does. average Overview South Staffs Water is a water only company, supplying around 1.6 million customers in the South Staffordshire and Cambridge regions. reduced As the shape of the water industry is set to change significantly, the business is developing a new flexibility in how it operates that means it can respond quickly and adapt as necessary to take full advantage of the new environment. household bills in 2015/16 “The business has maintained a clear focus on delivering both high quality service and value for money throughout the year while it responds to the shifting landscape of the UK water industry.” A year of challenge and change This has been the first year of delivery in the new AMP6 period. The new Outcome Delivery Incentive (ODI) targets represent our commitment to deliver what our customers said was important to them. The five Outcomes and 15 specific ODIs, covering all aspects of operations from water quality, secure and reliable supplies, customer services and environmentally sustainable operations to fair customer bills, provide real focus for delivery. Alongside these, we have defined our own seven business targets, including a focus on readiness for non-household retail competition and employee satisfaction, safety and wellbeing. A strong business plan, based on one of the largest pieces of customer engagement we have taken to date, is in place to deliver these targets and meet the challenges and opportunities this five year period will present. 8 The business has maintained a clear focus on delivering both high quality service and value for money throughout the year while it responds to the shifting landscape of the UK water industry. Our household customers continue to enjoy some of the lowest bills in England and Wales. In 2016/17, the average household bill has reduced from £144 to £142, and from £129 to £127 in the South Staffs and Cambridge regions respectively. Water quality has been the most notable challenge of the year, with results falling short of our target in some areas. We have worked transparently with the Drinking Water Inspectorate and have taken steps to restore performance and, as a result, are already seeing real improvements in this vital area. We have maintained our strong track record on leakage and are pleased to have delivered our best result in the customer supply interruptions measure in 15 years. Achieving a reduction in our retail costs without impacting the quality of customer service is a key area of focus. Savings have been made this year through transferring some non-voice back office functions offshore, the merging of the Cambridge customer contact centre operations with those in the South Staffs region and further changes to metering operations.