Affinity Water Re-examined Its Design Processes
Published on by Water Network Research, Official research team of The Water Network in Business
Re-examination of Affinity's procurement and design processes, for instance, resulted in a reduced unit cost of pipe renewal
Affinity Water has published its Annual Report and Financial Statements for the year ended 31 March 2015, the final year of the 2010-2015 price control period (Asset Management Plan 5 or AMP5).
Affinity Water’s Chairman, Dr Philip Nolan, was pleased to report the company had made significant improvements to its business during AMP5, despite the 2009 price determination being a challenging one.
He said: “Since 2010, we have been focused on driving up service levels whilst at the same time realising £26 million in operating cost net efficiencies. This has resulted in lower bills and a better service for customers. Between April 2010 and March 2015, we invested over £460 million enhancing and maintaining our extensive network of assets to prevent failure and secure a resilient supply.
“The improvements that we have made provided a strong foundation for our Price Review 2014 (PR14) Business Plan. This helped us to deliver a plan that Ofwat had confidence in. In April 2014, Ofwat announced that we were one of only two companies to achieve enhanced status for our Business Plan. In February 2015 we accepted Ofwat’s final determination of price controls.
“Being awarded enhanced status has enabled us to undertake early, detailed planning and preparation for AMP6 (Asset Management Plan 6 from 2015-2020).”
Business highlights
Financial
Revenues - £291 million.
Profit after tax - £33 million.
Net cash from operations - £171 million.
Investment in assets £113 million.
Reduction in cost of operations of £3 million.
Operational
Leakage below the target set by Ofwat.
Infrastructure and non-infrastructure stability - Stable.
Water quality (2014) - 99.97% mean zonal compliance.
Source: Affinity Water
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