Service delivery comparison for 2016-17 shows wide variations

An overview of the sector’s service delivery performance in the year to 31 March 2017 was published by Ofwat last week, based on the data drawn from individual water company Annual Performance Reports. Among the headline findings in the Service delivery report 2016-17 were:

  • Most companies met over 60% of their performance commitments (PCs) for 2016-17, though there was considerable variation company to company.

  • So far in the 2015-20 period, companies have reported outperformance payments of £167m and underperformance penalties of £76m.

  • Over the first two years of the current price control period, a majority of companies reported cost efficiencies beyond those anticipated at PR14. Return on Regulated Equity figures showed that most companies reporting outperformance on expenditure also reported outperformance of PCs with financial delivery incentives, but this is not universal.

Customer service and satisfaction increased in 2016-17 compared with the previous year.

In terms of specific areas of service:

  • Leakage – sector performance has slightly worsened compared with 2015-16.

  • Water supply interruptions – there was, on average, a decrease in the length of supply interruptions across the sector, although five companies reported an increase.

  • Sewer flooding – performance was mixed, with some companies exceeding and others falling short of their commitments.

  • Mains bursts – performance in 2016-17 was broadly in line with previous years.

  • Water quality contacts – only eight companies performed ahead of their 2016-17 commitments on water quality contacts.

See the full report HERE