Scottish Water invested £647 million last year in Scotland’s water and wastewater infrastructure and delivered a “record level” of customer service and environmental performance.
In the company’s annual report and accounts, it said it plans to invest more than £3.5 billion, during the 2015-2021 investment period, to maintain and replace its infrastructure.
The company claims to be one of the biggest infrastructure investors in Scotland.
It aims to deliver further improvements to drinking water quality, protecting the environment and supporting the Scottish economy.
The report highlights improvements in Scottish Water’s customer experience measure and performance against its overall regulatory target were exceeded.
Water quality during the 12-month period remained high with 99.9 per cent of all tests taken at customers’ taps complying with strict standards.
There were fewer failures at treatment works than in any previous year, the company’s wastewater performance highlighted.
As part of the report, the business outlined its financial results for the year ended 31 March 2018. The group’s performance for the year was strong with revenue for 2018 increasing to £1.4 billion, up from £1.2 billion in 2017.
Analysis of Scottish Water’s regulated water and waste water services segment shows revenue was £1.19 billion for 2018, compared to £1.14 billion for the same period the previous year. The group’s other segments include its subsidiary Business Stream (£356 million revenue in 2018, compared to £183 million in 2017) and its non-regulated businesses (£20 million in 2018, compared to £21 million in 2017).
The headline group surplus before tax was £22.4 million lower than last year at £71.8 million. The company said this reduction was primarily due to the £11.8 million reduction in Business Stream’s surplus and the expected increase in non-cash pension charges of £16.7 million.
However, Scottish Water, on a regulatory accounting basis, generated a surplus before tax of £107.8 million, £8.3 million higher than last year. The company has committed to reinvesting these earnings in future service delivery.
Environment secretary Roseanna Cunningham, said: “This annual report provides further evidence of the progress Scottish Water is making. They are a public sector success story and I welcome their achievements, including the highest ever levels of customer satisfaction.
“As well as delivering high quality drinking water and protecting the environment, they are also making a valuable contribution to our economy. Last year, Scottish Water invested £647 million in the nation’s water and wastewater infrastructure providing jobs and supporting our communities. This was achieved whilst ensuring that average household bills in Scotland are £42 lower than those in England and Wales.”
Scottish Water chief executive Douglas Millican added that customers are at the heart of the company’s strategy and commended the business’ ability to deliver service improvements while providing value for money.
He said: “We have continued to invest significantly to sustain high levels of water quality and increase the resilience of our networks. Scottish Water is one of the country’s biggest infrastructure investors and during 2017/18 we invested £647 million to ensure that we can keep delivering for our communities and our customers.
“Water quality remains at very high levels in Scotland and we have achieved record levels of environmental performance. I’m delighted that once again Scotland’s water sector, led by us and working with our partners and suppliers, has been again recognised by Which? as being the most trusted by Scottish consumers.”