2021 Summary Performance Report - South West Water

2021 Summary Performance Report - South West Water
Summary Performance Report
2021 Summary Performance Report - South West Water
01                                                                          Summary Performance Report 2021 – South West Water Limited

Welcome to South West Water

Welcome to South West Water
We all know that water
companies have a vital role
today and every day, providing
customers with safe and
clean drinking water, and
clean bathing waters, with the
importance that has on health                      Isles of Scilly
and hygiene – Bringing water
to life. That’s a given.
We also believe we have a unique role        About this document                         South West Water area
to play in supporting the lives of people    In our Business Plan for 2020-2025          We provide water and wastewater
and the places they love for generations     we set out our eight outcomes which         services to South West Water customers
to come. That’s why we exist.                reflect the things that matter most to      in the Cornwall, Devon and parts of
For us it is not just about what we do       our customers and the environment           Dorset and Somerset.
but how we do it – and that’s why we         (developed with input from our most
                                                                                         On 1 April 2020, our licence was extended
place such importance on living our          extensive customer engagement
                                                                                         to provide water and wastewater services
core values daily, operating in the public   exercise to date).
                                                                                         on the Isles of Scilly.
interest, in the regions we support.         This document sets out our performance
                                                                                         Bournemouth Water area
We have set stretching performance           in 2020/21 against the commitments we
                                                                                         We provide water services to
commitments against our outcomes             made to our customers in our Business
                                                                                         Bournemouth Water customers in parts
which are subject to significant Board,      Plan.
                                                                                         of Dorset, Hampshire and Wiltshire.
customer and other stakeholder scrutiny.     It is a summary of our Annual
Progress against these commitments           Performance Report which contains more
has been summarised in this report           details on our performance commitments
and there in more extensive detail in        and financial performance. The Annual
our Annual Performance Report and            Performance Report can be found at
Regulatory Reporting.                        www.southwestwater.co.uk/report2021.

 How we’re doing
   7                         12                         15                     7                           3
 Area of Excellence          Outperformance             On track               Marginal                    Area of focus
 Where performance           Where performance          Where performance      underperformance            Where the Board
 has significantly           has demonstratably         has met or slightly    Where the Board             acknowledges
 exceeded our                exceeded our               exceeded our           believes the                significant work
 commitment and              commitment and             commitment (and        Company has plans           is required to
 we believe the level        we will continue to        one narrowly missed    in place to quickly         achieve committed
 of performance is           work to maintain           within regulatory      bring performance           performance levels
 sustainable based           outperformance.            deadband)              back within                 and is implementing
 on measures taken                                      and the Board          committed levels.           published Executive-
 and programmes                                         remains confident                                  led improvement plans
 underway.                                              commitments will be                                overseen by the Board
                                                        met in future years.                               with more frequent
                                                                                                           reporting to regulators
                                                                                                           and other stakeholders.
2021 Summary Performance Report - South West Water
02                                                                            Summary Performance Report 2021 – South West Water Limited

Summary of our performance against our 2020/21 targets

South West Water has a range                 Clean, safe and reliable                       Reliable wastewater service
of outcome targets which                     drinking water
apply across its South West
and Bournemouth areas.
These targets are based upon                 Providing an uninterrupted supply of           Ensuring our customers can rely on us
                                             fresh clean water that not only meets          to remove and dispose of wastewater
extensive research identifying               the highest water quality standards but        safely and efficiently, and that the
key customer and other                       is also free from unwanted taste, colour       likelihood of sewer flooding on
stakeholder priorities.                      or smell.                                      customers’ property is minimised.

South West Water has met, exceeded
or is within the regulatory deadband /
tolerance for 34 of its 44 performance
                                             6 of 7
                                             2020/21 TARGETS MET/ON TRACK
                                                                                            6 of 9
                                                                                            2020/21 TARGETS MET/WITHIN
commitments, however there are                                                              REGULATORY DEADBAND
a number of areas of focus where
plans have been developed to ensure          Available and sufficient resources             Protecting the environment
performance commitments are achieved
in future years.
South West Water’s Board has
categorised these 34 commitments as          Preventing restrictions on water use and       Minimising our impact on the world
either areas of excellence, outperformance   managing and delivering the region’s           around us and taking steps to protect
or on track as defined on page 01.           supplies as efficiently as possible.           and enhance it where possible.
The remaining ten commitments have
been classified by the Board as either
marginal underperformance or areas
                                             1 of 3
                                             2020/21 TARGETS MET
                                                                                            3 of 6
                                                                                            2020/21 TARGETS MET
of focus.
The Board is targeting achieving all         Responsive to customers                        Benefitting the community
commitments by the end of the 2020-25
regulatory period.
Section 3 of the Annual Performance
Report and Regulatory Reporting (pages       Dealing with customer requests,                Having a positive long-term effect on
171 to 178) contains a full breakdown        problems and queries quickly and               people and quality of life in the region.
of current year performance, prior year      efficiently, and ensuring the service
performance (where applicable) as            our customers receive represents
well as regulatory financial rewards and     value for money.
penalties which are forecast to be applied
for the year.
                                             7 of 8
                                             2020/21 TARGETS MET
                                                                                            2 of 2
                                                                                            2020/21 TARGETS MET/ON TRACK

                                             Resilience                                     Fair charging for all

                                             Making sure water and wastewater               Being efficient in order to keep our
                                             services can withstand the potential           costs as low as possible and offering
                                             impacts of extreme weather and                 support to those who struggle to pay.
                                             security threats.

                                             5 of 5
                                             2020/21 TARGETS MET
                                                                                            4 of 4
                                                                                            2020/21 TARGETS MET
03                                                                      Summary Performance Report 2021 – South West Water Limited

Our performance in 2020/21

                                                                                           2020/21                     Reward/
                                                                         2020/21            Actual          Target      penalty
Outcome         Performance commitment              Units                 Target      Performance             met           £m
                Water quality compliance (CRI)      CRI score               0.00                2.06             No     (0.022)
                Water supply interruptions          hh:mm:ss per          6mins 5mins 38secs                    Yes       0.079
                                                    property             30secs
Clean, Safe
and Reliable    Mains repairs                       nr/1,000km            152.3               150.4             Yes       0.011
Drinking                                            mains (nr)
Water           Unplanned outage                    %                       2.34                1.01            Yes             –
                Taste, smell and colour contacts nr/1,000 pop               1.68                1.65            Yes       0.011
                Efficient delivery of the new       months project            n/a      On track for             Yes             –
                Knapp Mill WTW                      is delayed by                       future year
                Efficient delivery of the new       months project              0                 0             Yes             –
                Alderney WTW                        is delayed by
                Water restrictions placed           number                      0                   0           Yes             –
                on customers
                Leakage                             Ml/d (three-year      120.5               126.8              No     (3.875)
Available and                                       average total)
Resources       Per capita consumption              litres/person/        144.4               144.9              No     (0.139)
                                                    day (three-year
                                                    average total)
                Internal sewer flooding             nr/10,000 sewer         1.68                1.34            Yes       1.197
                incidents                           connections/yr
Reliable        External sewer flooding incidents nr/yr                   1,665               1,499             Yes       0.996
Service         Sewer collapses                     nr/1,000km of         17.06                 9.76            Yes       0.292
                                                    sewer/yr (nr/yr)
                Sewer blockages                     nr/yr                 7,540               6,484             Yes       1.056
                Odour contacts – wastewater         nr/yr                    230                219             Yes       0.055
                treatment works
                Descriptive compliance              % compliance         100.00                 98.8             No     (0.056)
                Treatment works compliance          % compliance          100.0               99.04 Regulatory                  –
                (numeric)                                                                            deadband
                Total wastewater treatment          % compliance          100.0                 98.9             No             –
                works (WWTW) compliance
                Compliance with sludge standard % compliance             100.00               98.39              No     (0.124)
                Risk of severe restrictions         % of population             0                   0           Yes             –
                in a drought                        at risk
                Risk of sewer flooding in a storm   %                     30.54               14.61             Yes             –
                Resilience in the round –           number of                 20                104             Yes       0.165
                wastewater                          action plans
                Resilience in the round – water     number of                767                197             Yes       0.684
                Resilient water and wastewater      Appointed or       Appointed         Appointed              Yes             –
                services on the Isles of Scilly     not appointed
04                                                                                                     Summary Performance Report 2021 – South West Water Limited

Our performance in 2020/21 continued

                                                                                                                                2020/21                           Reward/
                                                                                                           2020/21               Actual               Target       penalty
 Outcome                    Performance commitment                          Units                           Target         Performance                  met            £k
                            C-MeX – Customer measure                        score                           Median Below median                            No      (0.534)
                            of experience
                            Operational contacts resolved                   %                                  95.0                    96.0               Yes        0.025
 Responsiveness first time – water
 to Customers
                            Operational contacts resolved                   %                                  95.0                    95.1               Yes        0.001
                            first time – wastewater
                            D-MeX – Developer measure                       score                           Median                 Median                 Yes               –
                            of experience
                            Customer satisfaction with                      %                                     70                     70               Yes               –
                            value for money
                            Priority services for customers                                                   3/3                    3/3                  Yes               –
                            in vulnerable circumstances                                                subtargets:            subtargets:
                            • PSR Reach                                     %                                 2.5                    4.6
                            • Attempted contacts                            %                                45.0                   51.2
                            • Actual contacts                               %                                17.5                   39.1
                            British Standard for inclusive                  Achieved or not              Achieved               Achieved                  Yes               –
                            service provision                               achieved
                            Overall satisfaction of services                %                                     73                     89               Yes               –
                            received on the PSR
                            Pollution incidents (wastewater) nr/10,000km                                     24.51              130.87                     No (12.231)
                                                             sewer length/yr                                                  (see APR
                                                             (nr/yr)                                                       for alternate
 Protecting the                                                                                                           methodology)
 environment    Number of pollution incidents                               nr/yr                                   0                    10                No               –
                            cat 1-3 (water only)
                            Biodiversity – enhancement                      hectares                       73,209                  85,100                 Yes        4.023
                            Biodiversity – compliance                       number                                  0                      0              Yes               –
                            Biodiversity – prevent deterioration number                                           21                     46               Yes               –
                            EPA                                             rating                                  3                      2               No      (1.000)
                            Bathing water quality                           number                                -8*                    -4*              Yes        1.104
                            Abstraction incentive                           MI                                 n/a**           On track**                 Yes               –
 Benefiting the
                            Installation of AMR meters                      nr/yr                        161,332                 165,685                  Yes               –
                            Number of customers on one                      number                         27,000                  30,565                 Yes               –
                            of our support tariffs
 Fair charging
 for all                    Voids for residential retail                    % of households                    0.91                    0.84               Yes               –
                            Percentage of customers who                     %                                  89.0                    89.4               Yes               –
                            find their water bill affordable
 Total                                                                                                                                                             (8.903)
* -8 is the baseline position and our position of -4 for 2020/21 represents an improvement at four sites on a net basis (in line with the definition of this commitment).
  See the Annual Performance Report and Regulatory Reporting for further information.
** While we are on track with this performance commitment, in 2020/21 the scheme was not triggered (as there was no need in line with the position of our water resources
   at that point in time).
05                                                                          Summary Performance Report 2021 – South West Water Limited

Our performance in 2020/21 continued

Where we have                               Voids for residential retail                 Resilience in the round-
performed well                              Investigating and reducing the number        wastewater
We have a range of performance              of household properties that do not          This measure relates to the ability to
commitments across our operational          pay for the services they receive (void      protect and quickly recover treatment
area, the majority of which have annual     properties) helps us reduce the bills        processes at wastewater treatment
targets and all having five-year 2025       that all customers pay.                      works in the case of extreme weather
targets. In some cases, where we have                                                    events. It is measured as the number
                                            South West Water contacts customers
exceeded these targets, we have earned                                                   of resilience action plans put in place
                                            who may be in occupancy to encourage
a reward as shown on pages 03 and 04.                                                    for the wastewater treatment works.
                                            them to get in touch, uses commercially
Internal sewer flooding                     available data and makes visits to           South West Water has developed
During 2020/21 the number of internal       properties to ensure charges are applied     plans for 104 treatment works during
sewer floodings decreased from the          where services are used.                     the year, significantly in excess of the
previous year, resulting in 105 internal                                                 target of 20.
                                            This has meant we have been able
sewer flooding incidents (or 1.34 per       to keep the percentage of households         The plans have been produced to
10,000 sewer connections).                  which are correctly noted as vacant          improve the response and recovery
This follows ongoing activities to mitigate with no charges levied under the 0.91%       of each wastewater site following any
the risk in this area, such as sewer        performance commitment level at 0.84%.       flooding incident in line with our business
                                                                                         plan. They will be reviewed and updated
cleansing and targeted investment to        Biodiversity - enhancement
address defects. This has been achieved This commitment concerns the increase            following flood events or when new
despite an unusually wet August in                                                       information becomes available.
                                            in the area of land under active improved
2020 which resulted in above average        catchment management as part of our          Resilience in the round - water
incidence of floodings in that month        ‘Upstream Thinking’ project interventions.   This measure reports the number
(with some storms which were classified                                                  of properties affected by unplanned
                                            In 2020/21 we achieved a cumulative
as one in a thousand year events).                                                       interruptions to supply of greater than
                                            total of 85,100 hectares, which is above
Sewer blockages and sewer                                                                twelve hours duration.
                                            our target and has been met through a
collapses                                   combination of early delivery in 2019/20     In 2020/21, 197 properties were affected
Sewer blockages have decreased by           following our fast track business plan       by an unplanned supply interruption
3% and collapses per 1,000km of sewer       status as well as further new catchment      of greater than twelve hours. This is
have decreased by 24%. In both cases        management                                   significantly lower than our performance
this is better than our performance         in 2020/21.                                  target for the year of 767 properties.
                                            South West Water has also met its            This performance reflects an overall
Sewer blockages are a lead indicator for two further commitments in the area             reduction in supply interruptions
flooding and pollution from our network. of biodiversity (prevent deterioration          duration, including in shorter duration
This historically low performance           and compliance). These commitments           interruptions.
demonstrates the continued effectiveness involve implementing measures to                The measure has been particularly
of our programmes of work on the            prevent invasive non-native species
                                                                                         outperformed with South West Water’s
network through investigating, cleaning     as well as ensuring no pollution events
                                                                                         proactive response when we become
and repairing sewers.                       in special wildlife conservation areas.
                                                                                         aware that supplies may be interrupted,
                                                                                         including mobilising alternative
                                                                                         temporary supply measures quickly
                                                                                         when they may potentially be needed.
06                                                                        Summary Performance Report 2021 – South West Water Limited

Our performance in 2020/21 continued

                                                                                      This is now improving in line with our
                                                                                      Pollution Incident Reduction Plan and
                                                                                      alongside ongoing focus in sludge
                                                                                      compliance (which is rated amber), these
                                                                                      improvements, if sustained, will lead to
                                                                                      improvements in our assessment.
                                                                                      The other three measures were assessed
                                                                                      as green by the Environment Agency.
                                                                                      The prevention of water being lost due
                                                                                      to damaged mains is a key customer
                                                                                      priority and we continue to invest
                                                                                      significantly to prevent and manage
                                                                                      leaks on our network. The network was
                                                                                      challenged throughout the year with
                                                                                      increased demand due to changes in
                                                                                      customer behaviour during the multiple
                                                                                      lockdown periods and a higher than
                                                                                      normal regional population given the
                                                                                      significant proportion of second home
                                                                                      ownership in our region.
                                                                                      As a result, increased pumping has
                                                                                      been required to more rural areas.
Areas where we need                      We are committed to delivering a step        There was a record number of bursts
                                         change in our performance in order           in early 2021 and our teams responded
to improve                               to achieve the challenging targets set.      well to this increase, however as a
Where we have not met the targets for
                                         Our plan centres around the following        consequence of these factors, leakage
some of our measures, we have incurred
                                         key initiatives:                             rose resulting in our three year average
a penalty for not achieving the service
                                                                                      leakage target not being met.
levels we promised our customers.        • Root cause analysis
The Board has identified three areas     • Control systems and early warning          We increased our expenditure on
of focus, which are key areas of focus   • Aspect-specific plans                      investments in leakage reduction by
for our customers and suppliers where • Influencing customer behaviour                30% from the prior year to £22.2m. We
more significant work is required                                                     invested in mains repairs, replacement
                                         • Improving our environmental culture
and is underway to achieve future                                                     and active leakage control as well as
performance commitment targets.          An update to our plan is published           additional data loggers and our new
                                         and available to view at southwestwater.     cutting-edge leakage management
Pollution incidents                      co.uk/siteassets/document-repository/        visualisation tool, ‘Leaksure’.
Our performance in respect of
wastewater pollution incidents did not                                                A targeted action plan to continue
achieve the improvements we had                                                       to recover performance is now in place
targeted. We have intervened and         Environmental Performance                    focusing on:
restructured our operations, established Assessment (EPA)                             •   Detection and repair
a new wastewater leadership team and     The Environment Agency published its
aligned our business to improve our      EPA report for the calendar year 2020,       •   Customer leakage
environmental performance. Alongside     in July 2021, classifying South West Water   •   Data and control systems
the health and wellbeing of our people,  as a 2-star company. Our target had been     •   Reducing our own water use
this is our number one priority.         to be a 3-star Company and achieve the       •   Reducing customer water use
                                         maximum 4-star rating in 2023.
As a result of performance, we launched
our Pollution Incident Reduction Plan    The assessment is based on a basket
in September 2020, which has delivered of measures, which are rated on a
immediate and sustained improvements red, amber and green basis and our
in our performance with the average      underperformance is driven by our
number of monthly pollutions now         performance in respect of pollution
less than half of that seen before the   incidents which has been rated as red.
implementation of the plan.
07                                                                         Summary Performance Report 2021 – South West Water Limited

How does our performance compare to other water companies

                                           in the replacement of those water mains      Our performance in respect of risk
Out of our 44 performance                  at greatest risk of failure, extending the   of severe restrictions in a drought
commitments, 15 are ‘common’               coverage of our pressure management          reflects and builds on our history of no
                                           capability and increasing preventative       restrictions placed upon customers for
performance commitments.                   maintenance of air valves across our         24 years in the South West Water areas,
This means that all water and              network.                                     and none having been placed upon
sewerage companies will                    For more information on how our
                                                                                        customers in the Bournemouth Water
                                                                                        area, since Bournemouth Water was
report on these measures,                  performance compares to other
enabling comparison of                     companies see the 2020 Drinking Water
                                           Inspectorate’s annual report ‘Drinking       Our performance in respect of risk of
companies’ performance.                    Water 2020’ (www.dwi.gov.uk/about/           sewer flooding in a storm has improved,
                                           annual-report/2020/index.html)               however remains below average,
Each year in July, all water companies                                                  although we have demonstrated
publish their Annual Performance Report    Wastewater measures                          through significant reductions in
which provides a summary of their          Better than average                          internal sewer flooding and external
performance against regulatory outcomes    • Internal sewer flooding                    sewer flooding incidents that we are
and performance commitments. This                                                       making significant progress.
year companies were reporting against      Below average
the first year of the 2020-25 regulatory   • Pollution incidents
                                           • Sewer collapses
                                                                                        Customer service
period.                                                                                 Better than average
We always want to ensure that we are       • Treatment work compliance                  • Priority services register
reporting our performance accurately       We are currently below the industry          Average
and transparently with our customers       average for pollutions, sewer collapses      • Developer services measure
therefore we also undertake analysis       and treatment works compliance.                of experience (D-MeX)
ourselves to show how we are performing    We outperformed our target for sewer
compared to other water companies.         collapses for this year but know there       Below average
                                           is more work to do to compare more           • Customer measure of experience
Water measures                             favourably with the rest of the industry.      (C-MeX)
Better than average                                                                    As a provider of an essential service
•   Customer water consumption (PCC)       There are also plans in place to
                                           address our pollutions performance          we understand how important it is that
•   Supply interruptions                   going forwards (please see page 06          customers in vulnerable circumstances
•   Water quality compliance               for further details).                       are not limited in the way they access
•   Unplanned outage                                                                   or receive our services as a result of
                                            Treatment works compliance improved their vulnerability. We have always
Below average                               year on year and is within the regulatory strived to understand the needs of our
• Leakage                                   tolerance/deadband and we continue         customers in vulnerable circumstances
• Mains repairs                             to work towards the stretching target      to ensure that our services are inclusive
We are pleased that our improving           of 100% compliance.                        and that we provide additional support
performance has meant that we are           For more details on how our                as needed, both during the normal
better than average in important areas      performance compares to other              course of business and during events
such as customer water consumption,         companies please see the Environment or emergencies. We have met all of our
water quality and supply interruptions, as Agency’s 2020 Environmental                 targets in relation to customers on the
we know that these areas are important Performance Assessment (www.                    priority services register.
to our customers.                           gov.uk/government/publications/            Although our annual C-MeX score has
Unfortunately, we are below the industry water-and-sewerage-companies-in-              improved year on year to reach 80.96, it
average for our leakage performance this england-environmental-performance-            is marginally below the industry average,
year. A targeted action plan to continue report-2020).                                 marked 12th overall. Improvements
to recover performance is now in place,                                                already put in place during 2021/22 or
as discussed on page 06. Prevention         Resilience                                 planned during the remainder of the year
of mains failures is also integral to the   Better than average                        include: improvements to modernise the
continued reduction in the number           • Risk of severe restrictions in a drought navigational experience and appearance
and impact of our supply interruption       Below average                              of the Company’s ‘MyAccount’ platform,
events. Although we have been able to       • Risk of sewer flooding in a storm        including simplifying billing information,
outperform our target for this year, we                                                as well as improved analysis of contacts
are below average compared to others                                                   to allow us to identify more easily what
in the industry. We will continue to invest                                            is driving customer feedback.
08                                                                          Summary Performance Report 2021 – South West Water Limited

Technical auditor’s memo

                                          Through our audit work, we are
                                          satisfied to the extent that our audit
Alongside the assurance work for          to the preceding level of audited
South West Water’s 2020/21 Annual         documentation and/or other data
Performance Report (APR) we have          sources allows, and the data risks
reviewed South West Water’s (SWW)         assessed by SWW, that:
Summary Performance Report. This        • There are no additional key findings
document is part of a set of documents    to report in respect of data contained
relating to SWW’s performance in          within the Summary Performance
2020/21. Jacobs has independently         Report beyond those already noted
assured SWW’s reported performance        in South West Water’s Annual
against all of its Performance            Performance and Regulatory
Commitments. In addition, we have         Reporting 2021;
assured the technical aspects that feed • South West Water’s Annual Reporting
into the Performance Commitments.         procedures and governance have
We confirm that the performance set       been used to compile the Summary
out in the Summary Assurance Report       Performance Report submission; and
aligns to that reported in SWW’s Annual • We have confirmed the input
Performance Report and the reported       data presented in the Summary
metrics are as assured by Jacobs in       Performance Report is the data we
accordance with our Technical Auditor’s   assured through the APR 2021 audit
report on page 143 of SWW’s report        process.
“Annual Performance and Regulatory
Reporting 2021”.
We note in the Summary Performance
Report that SWW has made a comparison
of its own performance (against the
common performance commitments)           G D Hindley
with that of other water companies.       Technical Assurance Director
                                          Jacobs UK Ltd
We have not assured this assessment
and the opinions expressed are those
of SWW. We consider the Summary
Assurance Report provides a balanced
assessment of annual performance
reporting and fairly supports the overall
performance reported in SWW’s report
“Annual Performance and Regulatory
Reporting 2021”.
South West Water
Peninsula House
Rydon Lane
Devon              Registered in England
EX2 7HR            No: 02366665
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