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Ensuring water for life, together.

We provide essential water services to 2.6 million customers, and wastewater services to more than 4.7 million customers across Sussex, Kent, Hampshire and the Isle of Wight.

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Operational

Responsive customer service

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Our performance to date

Despite poor performance in pre-reporting for Ofwat’s new C-MeX (customer satisfaction) measure, in 2019–20 we have worked towards our aims to improve the experience and service we deliver to our customers.
The Consumer Council for Water has acknowledged our ‘significant strides’ to improve our service. However, we still have more work to do.
In response to the COVID-19 pandemic, we changed our processes, making them quicker and easier for those customers needing help with paying their bills.

Moving into the next five-year period:

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Improving our self-serve capability for customers by rebuilding our online portal.
Helping our customers use their channel of choice.
Simplifying our bill, working directly with our customers to meet their needs.

A constant supply of high-quality drinking water

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Our performance to date

We achieved 99.95% (2019: 99.98%) compliance with the Drinking Water Inspectorate’s (DWI) water quality measures.
Our leakage was above target at 94 Ml/d (2019: 102 Ml/d). Although an improvement, we missed our five-year target, incurring a penalty of £2.7million. This was due to the extreme weather of 2018 and 2019. Since then we have seen a reduction of 15%, our commitment for 2020–25.
We were able to limit the number of customers’ properties at risk of experiencing low pressure to 203 in 2019–20, well below our target of 257.

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The DWI has introduced new compliance metrics: Compliance Risk Index (CRI) and Event Risk Index (ERI). These are weighted by population, so will better highlight risks to individual consumers. These new metrics will apply from 2020 onwards.
We will continue our Catchment First programme, working with farmers and landowners to design and deliver solutions that address water quality at the source, which will deliver benefits to all parties.

Removing wastewater effectively

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Our performance to date

We reported 453 incidents of internal flooding in 2019–20 (2019: 389), meaning we missed our target of keeping these incidents below 392.
We undertook a £34.5 million rehabilitation project of the century-old Thanet sewers. This was the second phase of a three-phase scheme to overhaul the area’s sewer network.

Moving into the next five-year period:

We will continue to work closely with the Environment Agency to provide regulator updates on our progress, in order to achieve better environmental outcomes.
Our Pollution and Flooding Resilience team will continue its work to proactively define and deliver best-practice reduction programmes throughout our region.

Looking after the environment

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Our performance to date

Our Bathing Water Enhancement Programme (BWEP) continues to deliver results, with 62 bathing waters achieving excellent status, 56 against our target of 54 plus a further six improved by the BWEP.
Our pollutions performance is unacceptable with seven serious (category one and two) and 427 less serious (category three) incidents*. We continue to invest in our systems and assets, £54 million in 2019–20, to improve this performance.

Moving into the next five-year period:

We will be working with colleagues and our key environmental stakeholders to embed natural capital assessments and biodiversity ‘net gain’ as part of our overall approach.
We will continue to deliver our Pollution Reduction Plan, which has around 50 separate actions under eight Critical Success Factors and has seen us improve our self reporting to 86.5% (2018: 83%); read more in the looking after the environment section on pages 91 to 99.

^{As reported previously, we have identified a number of issues with spill data. The details of the steps taken, and that continue to be taken, to improve the robustness of the spill data collection, the data processing systems and the assurance of that data, have been shared with the Environment Agency and Ofwat. As those steps have not yet reached completion, the data supplied would continue to have an error band of up to 10%.}

Better information and advice

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Our performance to date

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The amount of water our individual customers use continues to be among the lowest in the UK, at 126.5 litres per day. The national average is 144 litres per person, per day. Our performance over the five-year period in reducing consumption earned us a reward of £6.9 million.

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Through a combination of incentives, home visits and behaviour change campaigns, our Target 100 programme aims to help customers reduce their individual daily water consumption to 100 litres by 2040. In turn, this would reduce demand on our limited water resources in the South East.
Our wastewater teams will continue to work with customers and local businesses to reduce the number of blockages and pollution incidents that impact our network and the local environment.

^{*Unwanted from a customer point of view.}

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Our performance to date

We continue to increase the number of customers on our various support schemes and tariffs, while working with our community partners to better identify those in vulnerable circumstances needing access to priority services. This became increasingly important as the COVID-19 crisis developed in early 2020.
We continue to drive efficiency savings, transforming people, processes and systems, in order to help keep bills affordable for all of our customers.

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We will expand our partnerships in the community to increase access to our Priority Services Register for those who find themselves in vulnerable circumstances.
By 2025, our domestic bills will have fallen by 18.4% (before adjustment for inflation), so the average household bill for water and wastewater will be equivalent to £343 a year.

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Our work towards creating a resilient future

Our Resilience Action Plan (RAP) details what excellent resilience looks like, and what actions we are taking to get there. We have collected these actions and will be delivering them over a two-year period, to 2022.

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People living in south Hampshire have always relied on the Test and Itchen rivers for their water. A hot summer, coupled with changes to the amount of water we were allowed to take from the rivers by the Environment Agency this year, posed a significant challenge in terms of balancing our customers’ demand for water.

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Using systems thinking to reduce pollutions

The Pollutions team came to bluewave to review the process of pollutions management. It wanted to reduce the number of pollutions, but needed to see the system quickly, to work out which parts of the process to fix.

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Working with customers to co-imagine our water future

Our Water for Life – Hampshire programme, which is looking to secure a resilient water future for the area, has been built with our customer engagement programme at its centre, and the Customer Action Group (CAG) provides us with informed qualitative insight.

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Embracing emotional intelligence in health and safety

"I have been a health and safety practitioner for more than 20 years, generally in high-risk enterprises. Principally, my job is to make sure the business is working in a way that meets regulations and policies".

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Understanding how to support customers affected by dementia

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Offering our customers online support, when they need it

On average, 1,500 customers per week have been using our webchat service to get help and support. Our satisfaction score averaged 4.5/5, and 94% of customers told us that they would use our service again.

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Working together to protect our customers struggling to pay their bills

Areas of Brighton are among the country’s 10% most deprived, so we wanted to help customers in financial hardship to keep their bills down.

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A helping hand for regional farmers

This year we ran a pesticide amnesty with local farmers in Brighton and Worthing. The scheme was run with our contractors, and we have another one planned for the Medway area co-funded by Kent County Council and North Kent Marshes Internal Drainage Board. This has been postponed due to the COVID-19 pandemic.

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New water quality training programmes improve capability

Investing in our people to improve competence and capability is a significant part of our Water First programme with focus in two key areas: Process Scientist training and the Competent Operator programme.

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Preventing our customers’ homes and properties from flooding

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Managing misconceptions to protect our bathing waters

The Southern Water Misconnections team was created and first deployed in January 2019 with an initial remit to identify misconnections at the seven locations of the Bathing Water Enhancement Programme (BWEP).

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Our specialist teams have now completed their first year of nitrate reduction measures in drinking water catchments in the Worthing area.
The Catchment team has been working closely with the Arun to Adur Farmers Group (AAFG) to raise awareness of water quality issues.

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From 31 March 2020, the defined benefit Southern Water Pension Scheme was closed to future accrual and all active members of the scheme and all other employees were transitioned to a new defined contribution arrangement.

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Our progress

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The markets we operate in

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Our business model

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Our culture

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Financial performance

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Governance

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Director’s remuneration report

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Financial statements

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