Calm and in Control - Severn Trent ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Issue 2 August 2019
Calm and in Control
I can barely believe that it is regulators and we are now in can brilliantly execute on our
almost a year since we submitted the final stretch before the final customer commitments. We
our initial PR19 Business Plan to determination in December. The can’t wait to get cracking.
Ofwat and then spent time with investment made in the past
I hope you have a wonderful
you all for our Capital Markets 12 months on our network has
summer and look forward to
Day to bring it all to life. We were given us additional resilience
seeing you all in the coming
in the midst of a pretty tricky so we can confidently say there
months.
summer dealing with sustained will be no hose-pipe ban or
hot weather and increased water restriction on use for customers
demand all whilst allowing a film for the 24th consecutive year.
crew to get full access to our Our documentary, Sewer Men,
people for the making of ‘ITV’s aired in the last two weeks on ITV,
Sewer Men’ (more on that later). creating great awareness for what
our people do and capturing the
Fast forward a year and as I
attention of millions of people to
prepare to head off on my holidays
educate them on sewer misuse.
we’re in a good place. Calm
even! (I can do calm, contrary But don’t mistake a calm approach
to popular belief). Both our SVT for lack of activity! The business
and HD plans have stood up is buzzing with planning for the
to scrutiny by customers and next AMP and making sure we
Summer reading list
Let us help you solve that holiday book dilemma! It’s been another busy few months for Severn Trent so we thought
we’d offer you a quick round up of what’s new in our world, and give you some links to some helpful reading
materials which we have released in the past couple of months:
Annual Report and Accounts - highlighting the progress we have made over the past year in achieving our
vision to be the most trusted water company by 2020, this year’s ARA also includes for the first time a chapter
on ‘Our Social Purpose’ and ‘ESG - at a glance’.
Annual Performance Report - this report aims to provide customers and wider stakeholders with a
transparent view of our performance in a regulatory context for 2018/19.
Sustainability Performance Disclosures - this pulls together our focus areas across environmental, social
and governance issues, outlining our key policies and strategies, and detailing what we consider to be the key
measures for our business. This is a working document and we are eager to hear feedback!
Turning on the UK Skills Tap - produced in association with The Social Mobility Pledge, this booklet outlines
the work we’ve been doing as a responsible, local employer to increase social mobility in our patch and tackle
the UK skills gap. It gives particular focus to the opportunities our Apprenticeship scheme gives young people
to get experience in the work place, learn new skills, while learning and contributing to the workplace.
2019/20 Q1 trading update - our trading statement confirmed that we have made a good start to the financial
year, and outlined the momentum we have continued to build ahead of AMP7.
Ofwat announcement - our response to Ofwat’s latest PR19 update.
Investor News Issue 2 August 2019
World Water Innovation Fund
Water companies around the significant investments to a joined forces with like-minded
globe are joining forces to form central fund which will then companies from across the globe
the World Water Innovation Fund, be used to develop innovative who recognise the challenges
with an aim to find, develop and techniques and undertake we face and who want to do
accelerate the ground-breaking trailblazing research. things differently, to find new
technologies that can make a real ways of working, and to leave a
Severn Trent Chief Executive Liv
difference to peoples’ lives across lasting water legacy for future
Garfield said:
the world. generations. That’s why I’m so
“Water scarcity, triggered by excited about what we can achieve
The fund has been established to
climate change and population, by working together.”
pool the intellect and resources
is a huge challenge for the water
of some of the world’s most You can learn more about the
industry across the world which is
forward-looking water companies World Water Innovation Fund
why today’s launch is so important.
to protect this precious resource here.
We are the custodians of what is
against the growing challenges
a precious resource, and which
of climate change and population
is so vital to everyone across the
growth. Members have committed
world. By creating this fund we’ve
Liv Garfield named one of Glassdoor’s top UK Chief Executives
Our very own Chief Executive Liv chuffed to bits to be recognised
Garfield has scooped a Glassdoor because it means so much more
Employees’ Choice Award, which when it’s your own teams who’ve
honours the country’s top CEOs. voted.”
Among the approximately 900,000
“It’s really important to me and
companies reviewed on Glassdoor,
to the company that we’ve built a
based on feedback given by the
great place to work for everyone
companies’ own employees, the
here at Severn Trent and that we
average CEO approval rating is
serve our customers to very best
69%. Liv received a fantastic 94%
of our abilities, and that’s so much
approval rating, making her one of
more important than any personal
Glassdoor’s top 50 CEOs. to work for as voted for by
recognition.”
employees. Particular areas
“It’s really quite humbling to
Severn Trent gained further of praise include the focus on
know that Severn Trent’s own
recognition at the Glassdoor wellbeing in the organisation and
employees shared their views like
Employees’ Choice Awards, being the wide availability of personal
this,” Liv responded, “and I’m just
ranked in the top 50 companies development opportunities.
Investor News Issue 2 August 2019
AMP7 ODI Deep Dive: Biodiversity
Biodiversity is hugely important to encompass all Sites of Special We have already lined up a
for our environment, impacting Scientific Interest (SSSIs) and number of projects which will
on the regulation of our climate, Special Areas of Conservation help us achieve, and exceed, this
the purification of our water, (SACs) that we own, as well as target:
and the pollination of our crops. land that we can influence through
• Wastewater treatment work
Beyond just the environmental our grant schemes.
improvements to reduce
benefits, improving biodiversity
We have engaged with a number phosphates entering rivers;
in our patch helps improve water
of key stakeholders in this area,
quality which drives down costs • Sewer system improvements
including the Environment Agency,
for the business, and contributes where they are impacting SSSIs;
Natural England, the Wildlife
to our broader measure around • Peat bog restoration in the Peak
Trusts within our region and
the Water Framework Directive. District through Moors for the
representatives of Blueprint for
It also enhances our relationship Future partnership; and
Water (a coalition of 16 leading
with our community and customer
environmental and fishery NGOs) • Boost for Biodiversity fund (see
perception, which is an important
to discuss their expectations. case study below).
part of the C-MeX measure in
AMP7. Our AMP6 strategy aimed to There are two customer ODIs
improve biodiversity on SSSIs and related to Biodiversity - one
As part of our PR19 research,
SACs, and we are expecting to for water and one for waste.
customers told us that they would
outperform our target, achieving These ODIs reward the company
like to see a broadening of our
585 hectares of improvement for any hectares improved
approach to biodiversity, on land
against a target of 409 hectares. above our target of 1,090, with
as well as in water, in partnership
In AMP7, we are committing an outperformance payment
with experts. In response, we
to a net improvement of 1,090 of £3,627 per hectare. These
have promised to undertake
hectares across water and waste customer ODIs are uncapped.
an ambitious biodiversity
while continuing to maintain the
improvement programme in
improvements delivered in AMP6.
AMP7, expanding the scope of our
biodiversity-enhancing activities
Success story: Ian Steele at Treflach Farm in Shropshire
Ian’s enterprise works towards
sustainable farming practices
to produce wholesome food.
He applied for funding to
support a wetland and drainage
improvement project at his farm
in Shropshire, and was awarded
£29,425.
Ian put the funding towards
various solutions including
alterations to the cattle shed
“We were awarded £29,425 drainage to prevent nutrient
to tackle a number of leaching, installing a more
efficient septic tank system and
issues relating to the restoring a pool to enhance
local watercourse, such biodiversity through the protection
as nutrient leaching, and of amphibious species and
lack of water for grazing improving flood risk management.
livestock.” You can read more stories like
- Ian Steele Ian’s here.
Investor News Issue 2 August 2019
Executive Summary
The purpose of this report is to compare the performance of the water sectors in England,
Comparisons of Water Sector Performance
Scotland, in the
Northern Ireland and UK
Wales from 1990 to 2017.
Last year Global Water found
During to be mid-range,
this period, customers in but
Englandwithwere served
incidents. Since
by a total privatisation,
of nine privately owned Water
Intelligence (GWI) published bills considerably
and Sewerage Companieshigher
(WASCs), than the andEnglish
Scotland NorthernWASCs haveeach
Ireland were alsoserved
takenby one
research which assessed state-owned
average. WASC and Wales was, for the most part, served by one not-for-profit
significant strides on leakage, privately
owned WASC. Independent regulation has been in place in England and Wales since 1989, and
the Water sector in England reducing average leakage rates
Companies
in Scotland in England
since 2005. were
In practice, the budget for Northern Ireland Water (NI Water) is set by
and Wales against European the devolved administration. from 30.19% to 22.45% - even
shown to have increased capital
counterparts, and concluded that the worst performing English
spending, particularly in the
‘there is a strong case for stating company
The graphs in this report plot the performance of the WASCs has a lower
serving average
Scotland, Northern
years
Ireland, immediately
Wales following
with the average performance of the nine English WASCs. To show the range of
that the UK regulated system leakage rate than NI and Scottish
privatisation,
performance which
in England, we has
have also plotted the best and worst performance in England for
delivers the best value for money eachcontributed
Water.
year. to an overall decrease
of all the utility sectors in this
in the number of water quality You can find the full report here.
study.’ Our results can be summarised as follows:
Following on from this, the
Measure Top three performers
GWI have released a new study
comparing the performance of 1 Best performing English company
water companies in England, Water quality – how good is the
Scotland, Wales and Northern 2 Wales
water that comes out of the taps
Ireland across five measures 3 English average
since privatisation.
1 Best performing English company
The report found that in each Total leakage – the amount of water
2 English average
of the areas tested, the best ‘lost’ in the system
performer was one of the nine 3 Wales
English WASCs, while state-
owned Northern Irish Water was 1 Best performing English company
Water quality incidents – pollution
found to be towards the bottom incidents harming waterways
2 Wales
of the table on the majority of 3 Scotland
measures. The performance of
Scottish Water has improved since The quality of wastewater treatment 1 Best performing English company
the establishment of independent – for which we’ve used tertiary 2 Northern Ireland
regulation in 2005, but it remains treatment processes as a proxy
3 English average
mid-range on most measures.
Performance in Wales, which 1 Best performing English company
operates as a not-for-profit The charge of water & wastewater
privately-owned WASC, was also 2 English average
to customers1
3 Wales
Excluding NI Water, which does not charge a tariff directly
1
globalwaterintel.com 1
Award-winning water treatment innovations
Our ‘Rapid Detection of Bacteria’ machines have not been suitable Not only are the results amazing,
project has been recognised as for use directly on site. but our use is a first for the UK
one of the most exciting water water industry.
Based on the same technology,
treatment innovations in the UK,
BactoSense has been developed
winning first prize at the Water
specifically for use in the water
Industry Awards.
sector. Using ‘rapid online flow
The project was set up to look cytometry’, we can detect changes
outside of the world of water to in bacteria counts 24/7, allowing
other industries for methods of us to work more proactively to
increasing proactivity in the way prevent failure and keep our
we detect bacteria to produce customers’ water supplies safe.
faster results at the point of
The technology has been adopted
sampling. Complex technology
with incredible success - results
from the medical world has
that used to take 24 hours to
recently been adopted into the
arrive now come in just 20
water industry, but until now these
minutes.Investor News Issue 2 August 2019
ITV’s Sewer Men
Last Summer we invited an ITV our new ‘Water DIY’ channel,
film crew into Severn Trent to featuring two of our employee
follow a number of our colleagues stars offering customers simple
around the business for six self-help guides.
weeks. The result is a two-part
You can take a look here.
documentary, Sewer Men, which
has been broadcast to the British By highlighting the work that goes
public over the past two weeks. on behind the scenes to bring
clean water to people’s taps, and
This was a fantastic opportunity
take their waste away and recycle
to broadcast to a large audience
back to the environment, we also
and educate the general public
hope that this will contribute
about key issues such as sewer
positively to our customer
misuse and water consumption.
perception, an important element
The two episodes were watched
of C-Mex in AMP7.
by over 3.7 million viewers, and
attracted a number of social For those of you who missed it,
media comments, such as those you can catch it on the ITV Hub.
highlighted. In conjunction with the
documentary, we also launched
Annual General Meeting
Severn Trent Plc held its Annual reminder, Andrew has announced
General Meeting on 17 July 2019, his intention to step down, Investor Relations team
and the Directors were pleased meaning this was his final AGM
that our shareholders passed all If you have any feedback or
as the Chairman of Severn Trent queries on this newsletter or
proposed resolutions - you can Plc. Andrew was re-elected as
see a full breakdown of votes cast the information within, please
Chairman in the AGM, as he will do not hesitate to contact a
here. remain as Chairman until the member of the Severn Trent
The AGM was also used as announcement and induction of Investor Relations team.
an opportunity to thank our his successor.
Chairman, Andrew Duff, for For more information, you can see
his commitment to the Board Richard Eadie
our market announcement here.
over the past nine years. As a Head of Investor Relations
+44 7889 806578
richard.eadie@severntrent.co.uk
Investor Events Timetable: Q3 FY20 Rachel Martin
Investor Relations Manager
2 September Citi European Utilities and Infrastructure Conference +44 7824 624011
rachel.martin@severntrent.co.uk
3 September Bank of America Merrill Lynch Conference
12 September Morgan Stanley Power and Utility Summit Abi Turner
Investor Relations Analyst
21 November Interim results announcement +44 7710 094193
Post results roadshow, covering UK, Europe, US and abigail.turner@severntrent.co.uk
22-29 November
Australia
11 December Ofwat announces Final Determination Andy Farrell
Investor Relations Analyst
We are always happy to host site visits for investors, so you can see
+44 7989 390825
our business first hand. Please let us know what you would like to see,
andy.farrell@severntrent.co.uk
and we can arrange it.You can also read
