Pennon Group’s non-household retail arm has secured more than 1,500 net customers since market opening.
The group said its programme to target existing water-only customers with a dual water and wastewater service has been successful and that Pennon Water Services is, so far, one of only three incumbent companies growing, with net customer growth since market opening.
Pennon chief executive Chris Loughlin told Utility Week he felt market opening had so far gone very well, and that he was glad Pennon was one of few incumbents in positive territory.
In its financial report for the year 2016/17, Pennon reported a rise in profit before tax of 18.3 per cent to £250 million.
The company put the profit increase down to higher revenues driven by customer demand and cost savings at South West Water, and growth at Viridor driven by the Energy Recovery Facilities (ERFs) which achieved EBITDA of £107 million, ahead of its £100m target.
Also helping to boost profits were improved recycling margins through “self-help” initiatives and continuing group efficiencies with £9 million per year of the c.£17 million per year expected from 2019 already secured.
Loughlin said: “Pennon has delivered a strong performance in 2016/17 across its water and waste businesses. South West Water’s return on regulated Equity continues to lead the sector while Viridor is growing through its energy recovery facility portfolio, delivering EBITDA of £107 million, ahead of our c.£100 million target.
“Across the group we are investing for growth while driving efficiency to keep costs low for the benefit of our customers. We have delivered savings of £129 million in total expenditure at South West Water since the beginning of the current regulatory period, cementing our commitment to reduce the real cost of water bills to 2020.
“We believe Pennon is well positioned now and for the future and our performance underpins our long-established sector-leading 10-year dividend policy of 4 per cent growth per annum above RPI inflation out to 2020.”