NW Business Plan (DRAFT)

7/27/2019 NW Business Plan (DRAFT)

1/15


2/15

WE SUPPLY CLEAN, CLEAR

DRINKING WATER THATTASTES GOOD

99.94%Compliance withrequired standards

56,832Samples per year

WHAT WE WILL DO

Work with farmers to preventpollutants such as pesticidesfrom entering the rivers that yourdrinking water comes from

Carry out major improvementsat water treatment worksserving Teesside, Tynesideand Northumberland

Clean 1,500 miles of waterpipes across the North East

WHAT YOU CAN EXPECT FROM US

Clean water:

Confidence that your tap wateris high quality and safe to drink

Clear water:

Fewer customers will receive tapwater that is cloudy or coloured


3/15


Reliable water

The chance of your water supplybeing unexpectedly cut off will bemaintained at the lowest levelin England

Sufficient supply

Less water lost through leaks

Water pressure at or above theminimum standard, for the vastmajority of customers

WHAT WE WILL DO

Replace 200 miles of water mainsto prevent pipes bursting andcausing supply interruptions

Continue to improve our leakfinding and repair services

Maintain our good performance

on water pressure

WE PROVIDE A RELIABLE

AND SUFFICIENT SUPPLYOF WATER


4/15


Excellent service

Dependable service

Fast resolution of problems

Contacting us to be asatisfying experience

WHAT WE WILL DO

Aim to get things rightfi

rst time

Keep you informed of progress

Check you are happy withour service

Offer ways you can contact usthat suit you (by phone, online,

text or email)

Provide a friendly service, andtreat you as an individual

WE PROVIDE

EXCELLENT SERVICEAND ALWAYS IMPRESS

OUR CUSTOMERS


5/15


Value

A fair price for a great service

Support for customers whostruggle to pay their waterand sewerage bills

WHAT WE WILL DO

Work effi

ciently so that we cankeep your bills as low as possible

Offer personalised adviceand support

Offer flexible paymentarrangements

Promote free water meters tocustomers who would benefit

Collect debt from customers whocan afford to pay, in order to keepeveryones bills down

OUR CUSTOMERS

CONSIDER THE SERVICESTHEY RECEIVE TO BE

VALUE FOR MONEY


6/15

WE PROVIDE A SEWERAGE

SERVICE THAT DEALSEFFECTIVELY WITH SEWAGE

AND HEAVY RAINFALLWHAT YOU CAN EXPECT FROM US

Lessfl

ooding

Reduced risk of our seweragesystem causing floodinginside customers homes

Less pollution

Reduced risk of our sewerage

system causing pollution to rivers

WHAT WE WILL DO

Improve 270 miles of sewersto reduce the risk of flooding

Continue to encourage ourcustomers to flush only toiletpaper, pee and poo!

Work with councils, theEnvironment Agency and others to

manage the drainage of rainwater


7/15

WE HELP TO IMPROVE THE

QUALITY OF RIVERS ANDCOASTAL WATERS FOR THE

BENEFIT OF PEOPLE, THEENVIRONMENT AND WILDLIFEWHAT YOU CAN EXPECT FROM US

Cleaner river water

Improved water quality along 30miles of the North Easts rivers

Better coastal water

Cleaner water for swimmingand surfing

All bathing waters in the NorthEast to meet the minimumstandard (Sufficient)

More than 80% of bathing

waters to meet the Good orExcellent standard

WHAT WE WILL DO

Improve 12 sewage treatmentworks to raise the quality ofwater we return to rivers

Improve our sewerage systemsat Seaham, Saltburn and SeatonCarew to better protect 3 bathing

waters from potential pollution

BATHING WATER QUALITY

80% 20%

80 % Excellent / Good quality bathing water

20 % Sufficient quality bathing water

EXCELLENT / GOOD


8/15


Protect

By 2020 greenhouse gas emissionswill be reduced by a third comparedto 2008 levels

Enhance

Increased variety of plants,

birds, insects and animals onNorthumbrian Waters land

Eels and other fish that live in theNorth Easts rivers to be protected

WE PROTECT AND ENHANCE

THE ENVIRONMENT INDELIVERING OUR SERVICES,

LEADING BY EXAMPLE

2008GREENHOUSE

EMISSIONS

1/3REDUCTION

BY 2020

30%POWER FROMPROCESSING

POO

WHAT WE WILL DO

Generate power from poo around 30% of the energy we usewill come from processing sewage

Work with local environmentalgroups to improve natural habitats

Ensure eels and other fishwill not be harmed when

we take water from rivers tosupply your drinking water


9/15


Customer bills kept aslow as possible

Work delivered with minimumdisruption to the service you receive

WHAT WE WILL DO

Use the latest control systems toreduce the cost of supplying water

Have the right information andequipment to deliver great service

Use the latest remote controlledmini-submarines to inspect andclean our reservoirs without

disrupting your water supplyor quality

Work with universities andsuppliers to develop newtechnologies and solutions

WE ARE AN EFFICIENT AND

INNOVATIVE COMPANY


10/15


Deliver improvements that couldnot be achieved by NorthumbrianWater alone

WHAT WE WILL DO

Work with wildlife trusts andenvironmental charities to manageour land

Work with the Environment Agencyand local councils to create newwetlands to store rainwater andimprove the environment.

Work with customers to usewater wisely

Work with others to managemoorland and protect the rivers thatyour drinking water comes from

WE WORK IN PARTNERSHIP

TOWARDS COMMON GOALS


11/15


Improved prosperity and wellbeingin our communities

Raised awareness that water isgood for you, particularly amongstchildren and young people

Raised awareness of theimportance of looking after the

environment

Good quality visitor centresand recreational opportunities atour main sites for local peopleand tourists

WHAT WE WILL DO

Just an hour more than half ourpeople giving 15 hours a year tohelp 700 community organisations

Provide tap fed water coolers forschools and community groups

Turn empty NorthumbrianWater buildings into facilities for

community use

Maintain good quality recreationalfacilities at our reservoirs, such asKielder Water

WE ARE PROUD TO

CONTRIBUTE TO THESUCCESS OF LOCAL

COMMUNITIES

Hours Volunteered

Organisations Supported

Percentage of employees who volunteered

in local communities

Totals since 2002


12/15

WHAT WE WILL DO

Make the best use of changesin technology and new waysof working

Spend money on services at theright time not early and not late

Identify future challenges and makesure we have plans to meet them


Each generation to pay its fair share

Water supply and sewerageservices to be safeguarded bothnow and in the future

WE DELIVER WATER

SERVICES THAT MEET THENEEDS OF CURRENT AND

FUTURE GENERATIONS INA CHANGING WORLD


13/15

Based on current assumptions,Northumbrian Water can deliver thispackage of water and sewerageservices for an inflation onlybill increase.

Inflation is the increase in the pricespaid for the goods and services thatwe all buy. We dont know whatinflation will be for the period 2015-20. Forecasts have suggested thatinflation, measured by the RetailPrices Index (RPI), could be around3% per year. This would mean an

increase of around 11.60 per yearon the average household water andsewerage bill. It should be noted thathousehold incomes also tend to riseover time.

When considering our plan, pleasebear in mind that other household

bills may also go up or down too.

COST TO CUSTOMERS

201516 201920

Average bill

365

Average bill

423Average bill

376

201617 201718 201819201415

Average bill

387

Average bill

399

Average bill

411

BILLS CHANGE ONLY BY INFLATION

WHAT THIS WOULD MEANFOR THE AVERAGE BILLPAYER BY 2019-20


14/15

ADDITIONAL IMPROVEMENTS

There are five additionalimprovements Northumbrian Watercould make over the next five years

if customers think that they aresufficiently important:

REDUCED RISK OF LOSS OF SUPPLY

(lasting more than 6 days)

We could ensure communities of more than 100,000people living in Sunderland, Durham and North Tynesidehave more than one source of supply. This would reducethe chance of losing their water supply for more than6 days if a rare event such as a major power failure orwidespread flood ever happens.

IMPROVED COASTAL WATER QUALITY

We could go further with our plan to improve bathingwater quality so that 5 bathing waters at Seaham,Saltburn and Seaton Carew move beyond Sufficientstatus to Good.

REDUCED RISK OF SEWER FLOODING

We could increase the length of sewers we clean from

250 to 330 miles every year so that the risk of oursewerage system causing flooding inside customershomes is reduced still further.

REDUCED LOW WATER PRESSURE

We could reduce the number of properties thatexperience low water pressure (below the minimumstandard) from 150 to 50.

FEWER UNEXPECTED INTERRUPTIONS

We could reduce the number of customers whose watersupply is cut-off unexpectedly, for more than 3 hours,from 18,000 to 12,000 per year.


15/15

COST OF ADDITIONAL IMPROVEMENTS

Reduced risk of loss of supply

(lasting more than 6 days)

0.70

Fewer unexpected interruptions 0.60

Improved coastal water quality 0.60

Reduced risk of sewer flooding 0.90

Reduced low water pressure 0.20

Total by 2019-20 3.00

ADDITIONAL IMPROVEMENTS

201516 201920

Average bill

365Average bill

426Average bill

377

201617 201718 201819201415

Average bill

388

Average bill

401

Average bill

413

WHAT THIS WOULD MEANFOR THE AVERAGE BILLPAYER BY 2019-20

If customers want these additionalimprovements, bills would graduallyincrease by 60p each year overthe five year period, reaching anadditional sum of 3.00 (withoutinflation) by 2019-20.

This means that bills would change by inflation plus an extra 60p each year for all additional improvements.

Documents

NW Business Plan (DRAFT)