Severn Trent has cut sewer flooding by 21 per cent, taking it down to its lowest ever level.
In its report for the financial year 2016/17, the company said it had also reduced supply interruptions by 17 per cent, and cut leakage by 2 per cent.
Strong operational delivery during the year resulted in net customer outcome delivery incentives (ODIs) of £47.6 million. About £10 million of that, Severn Trent chief executive Live Garfield told Utility Week, was because of benign weather.
Group turnover was £1,819 million, up £66 million (3.7 per cent) on the previous year, while reported profit before tax was up £39 million (7.8 per cent) to £544 million.
As part of its business plan, Severn Trent set out a target to help 50,000 vulnerable customers per year. The company exceeded its target in 2016/17 through schemes such as WaterSure and a range of social tariffs.
“Customers are at the centre of everything we do and I am delighted that we have been able to deliver significant improvements in the things they care most about,” said Garfield.
“Sewer floodings are down 21 per cent, and we have further reduced both supply interruptions and leakages. We have done this while maintaining the lowest bills in Britain. These results are testament to the hard work of my colleagues over the past year.
“Strong operational delivery resulted in net customer ODIs of £47.6 million, alongside which we are helping more than 50,000 vulnerable customers. New digital technology and improved processes are key building blocks in driving our ambition to be upper quartile versus our peers. We are improving our efficiency and have identified a further £100 million totex savings this regulatory period, taking total efficiencies to £770 million.
“We are delivering both strong customer-focused and financial outperformance this regulatory period, and we feel it is now appropriate to share this with our investors. The board is therefore pleased to announce an upgrade to our ordinary dividend policy, to growth of at least RPI +4 per cent.
“This year has had many highlights, however we know there is a lot of hard work needed to further improve our customers’ experience when things go wrong and we are confident in our plans to deliver these improvements.”