CCW to water firms: explain your finances or others will do it for you

(by Verity Mitchell)

CCW has commissioned research to explore how customers understand and interpret water company financial information. The research was conducted with household customers across England and Wales through online focus groups and in-depth interviews. It explored customers’ awareness and understanding of water company finances and whether current reporting helps customers feel informed or reassured.

The research showed that much of the financial information currently available does not seem to meet customer needs. It can feel inaccessible, overly technical, and disconnected from what matters to them – whether their money is being used fairly and effectively to deliver tangible improvements in services and the environment.

CCW found that customers engage with financial information differently depending on how much they trust their water company. Where basic service reliability is trusted, interest in finances tends to be low. Where competence or integrity are questioned, customers become more attentive to financial information and more likely to notice or listen to wider discussion about company finances.

Despite the effort companies put into their financial reporting, most customers do not engage directly with formal financial reports. Instead, perceptions of water company finances are largely shaped by secondary sources: media coverage, social media discussion, and word of mouth. Many of these remain negative in sentiment and may not be based on factual evidence.

Media coverage frequently highlights shareholder payouts and executive bonuses, often contrasting them with rising customer bills. Financial discussions commonly reference the large debt carried by water companies. Stories about sewage pollution or infrastructure problems are frequently framed alongside issues such as dividends, investment levels or corporate governance.

Importantly, customers frequently view financial reporting as written for investors rather than customers. They rarely see clear explanations of where money goes and believe that companies prioritise shareholder remuneration over service improvement. Media headlines and social media discussions also often simplify complex financial issues, which can reinforce negative or inaccurate assumptions.

CCW concluded that if companies do not explain their finances clearly, others will do it for them. Financial information needs to be designed for customers, not just investors. Traditional financial reporting is rarely accessible to the public. Clear explanations, visual summaries, and simple breakdowns of bill spending can help improve understanding. Customers want to understand how money translates into investment, service reliability, environmental improvements, and future resilience.

The most common gap customers identified was a clearer link between financial figures and real world outcomes. Many wanted to understand how spending translates into improvements, such as fewer leaks, cleaner rivers, or more reliable infrastructure. Acknowledging trade-offs, for example, between affordability, infrastructure investment and environmental improvement, felt more honest than presenting everything as straightforwardly positive. Participants preferred a neutral tone that explains decisions without appearing defensive or promotional. An overly polished or “PR-style” communication risked undermining trust.

A short financial performance summary with the bill was widely seen as the most visible option.

CCW’s recommendations for water companies included: 

• Start with what the information means for customers, not just the financial metric itself.

• Use plain English, short explanations and visual summaries, such as pie charts, showing how the bill is spent.

• Place definitions closer to where terms appear rather than relying on a separate glossary page.

• Provide a short headline summary for most customers and optional detail for those who want more.

• Use multiple channels, including bills, inserts, website summaries and non-digital formats, rather than expecting customers to search for information.

• Address sensitive issues directly and transparently, explaining how financial decisions relate to investment, service delivery and oversight.