RCS - Dwr Cymru Welsh Wtr - Support for further 50,000 low-income customers

PPLAnnouncement

06/06/2022 08:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220606:nRSF6861Na&default-theme=true

RNS Number : 6861N  Dwr Cymru Welsh Water  06 June 2022

 

6 June 2022

PRESS RELEASE

Welsh Water able to support a further 50,000

low-income households

·      £12 million support for vulnerable customers in 2022-23

·      Households who are struggling encouraged to contact Welsh Water

·      Company working with over 300 local organisations to help
customers in need

 

Dŵr Cymru Welsh Water, the only not-for-profit utility company in Wales and
England, has announced, as part of its annual results for 2021-22, that it is
investing £12 million this year to support its most vulnerable customers
during the current 'cost of living' crisis.

 

The company, with over 1.3 million household customers in most of Wales and
parts of England, is making available £55 million across the five years to
2025 to provide financial assistance to its customers.  127,000 of Welsh
Water's customers now benefit from discounted bills through social tariffs - a
larger number, proportionate to the company's size, than any other water
company in England and Wales. The company is earmarking over £12 million in
2022/23 to support its vulnerable customers who are struggling with their
water bills and it has confirmed that it wants to support an additional 50,000
low-income households.

 

Welsh Water works with over 300 local organisations (including Citizen's
Advice, Welsh Government's NEST scheme to support energy efficiency
improvements, Job Centre Plus, housing associations and foodbanks)  to help
identify and support customers who may be eligible for a discounted bill.  It
is also urging customers who may be facing difficulties to contact the company
as soon as possible to discuss the range of available options including
flexible payment schemes.

The company can provide short term assistance through reduced payment plans or
payment holidays, as well as advise customers on how to reduce their charges
longer term by opting to have a free water meter installed and provide
guidance on how to use water efficiently which can help reduce the volume of
water used.

 

This support is being targeted at those households facing  difficulties
paying their water bills and is enabled by the company's not-for-profit model.

 

Welsh Water's latest results show that it continued to invest nearly £1
million a day in its water and wastewater services over the past 12 months.
Operating costs increased £14 million last year due to rising energy prices
and need for additional measures to maintain essential water and wastewater
services during last summer's first ever amber hot weather warning and record
levels of visitors to parts of Wales.

The company's focus on delivering value for money for its customers has also
improved efficiency. This has resulted in cost-savings of £16 million in
2021-22 with efficiency initiatives including using digital, automation and
process improvements. Innovative ways of working have also been embedded since
covid-19 utilising online technology to reduce our location footprint and
associated expenditure.

 

Chair of Glas Cymru, Alastair Lyons, said: "Our latest results show that we
have delivered a strong performance despite the continuing operational and
cost challenges created by Covid-19 and dramatic weather patterns - a further
reminder of the urgency of tackling climate change.

 

"As a company, we always plan for the long-term but it is also important that
we respond to events as they unfold in the short-term.  Our unique
non-shareholder corporate structure allows us an undivided focus on our
customers and their needs: given the prevailing economic climate, it is vital
that we provide targeted support to help those most in need."

 

Welsh Water Chief Executive, Peter Perry, said: "As a company owned on behalf
of its customers, we are proud that we have some of the highest levels of
customer trust in the sector.

"We know that this trust must be earned by continuing to do the right thing:
this is why we are totally committed to supporting our customers and their
communities, especially during these difficult times as households struggle to
make ends meet. By making available over £12 million for our social tariffs
scheme this year alone, we are able to support low-income households
struggling to pay their bills. Anyone who is concerned about how they can pay
their water bills should contact us as soon as they can to discuss what
support may be available to them."

 

ENDS

 

 

 

 

 

 

 

 

 

 

 

Notes to Editors

Financial Results

·      Gearing - total net borrowings as a percentage of regulatory
asset value - currently at 58% compared to 93% in 2001 (2020-21: 60%)

·      Our credit ratings continue to be amongst the strongest in the
sector, which ensures excellent access to funding.  Our credit ratings have
remained unchanged since last year - with Fitch at A rating; Standard &
Poor's at A- rating and Moody's continue to rate us as A3. All ratings have a
stable outlook

·      Capital investment during 2021-22 totalled £334 million
(2020-21: £353 million), forming part of the £1.8 billion investment plan
for 2020-25

·      Operating costs, net of other operating income, were £343
million - £14 million higher than in the previous year (2021: £329 million)

·      Operating profit (before interest and tax) increased to £81
million (2021: £7 million) primarily  driven by revenue price adjustments,
growth and increased consumption for non-household customers, a reduction in
COVID-19 related costs, offset by cost pressures in power.

·      However, the overall loss for the year  is £224 million - £125
million higher than in the previous year, driven by fair value losses on our
derivative financial instruments(£107 million higher), increased financial
expenses ( £62 million higher), offset by a £37 million decrease in
exceptional costs.

 

Operational Performance

·      Our performance against the Drinking Water Inspectorate's
Compliance Risk Index (CRI) Measure deteriorated to 9.85 (2020: 4.17) due to a
number of water quality compliance failures. We are working hard to improve
our performance in this area

·      In 2021-22, the average customer minutes lost to supply
interruptions increased to 16 minutes and 12 seconds compared to 11 minutes 5
seconds in 2020-21, due in part to trunk main bursts in Penarth and Port
Talbot

·      Annual leakage was reduced to 157.4 megalitres per day (2020-21:
163.6 megalitres per day)

·      Good overall wastewater treatment works performance: 98.32% of
works fully complied with discharge permits in 2021 (2020: 99.66%)

·      84 wastewater pollution incidents were recorded (2020: 77)

·      The number of internal sewer flooding incidents has reduced to
201 (2020-21: 302)

·      94km kilometres of river were improved in 2021-22 (2020-21: 5)
reflecting our focus on improving river water quality in collaboration with
other bodies including Nutrient Management Boards supporting improvements in
Special Areas of Conservation rivers

 

Customer Service

·      In the final 2021-22 C-MeX results, Welsh Water achieved 5(th)
place out of the 17 water companies (down from 4(th) place in 2020-21)

·    127,000 household customers already benefit from one of our
sector-leading social tariffs

·    Written complaints received in 2021-22 totalled 2,468 (2020-21
2,874)

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRABRGDLSBGDGDU