Financial notes
1 - Following its investigation into our wastewater treatment works compliance reporting Ofwat imposed a penalty under Section 22A of the Water Industry Act. We provided in full for this proposed regulatory settlement in the financial statements for 2018–19 reducing profit in that year. We are now making rebates to customers, through revenue, over the period from 2020–25 and these are offset in the income statement by the amortisation of the provision made in 2018–19.
2 - Capital investment for 2020–21 has been restated to remove the intangible asset recognised for the future payments to Portsmouth Water in relation to the right to water from the construction of the Havant Thicket reservoir as described in note 1 of our Annual Report for 2021–22.
3 - ROCE is presented as the ratio of loss before interest and tax (£11.9 million) to non-current assets excluding debt (£7,213.9 million) less current liabilities excluding borrowings and lease liabilities (£507.2 million) from the Statement of Financial Position.
4 - Regulatory Capital Value (RCV) a measure of the value of our regulatory capital asset base as published by Ofwat.
5 - The net debt to RCV ratio is calculated as the ratio of short and long-term senior borrowings, less cash and short-term deposits to the RCV (all values taken from our Regulatory Accounts).
Customers and communities
We work hard every day to make sure that we are improving our services for customers and having a positive impact on our communities.
Future plans to 2025
The environment
While some of our metrics have improved, we know that we still have work to do to meet the expectations of our regulators and our customers.
Future plans to 2025
Our people and partners
We are continually building the skills that our people and contract partners need to enable them to create a sustainable future for our region.
Future plans to 2025
Regulators
To provide high-quality water and effective wastewater services for the South East, we must consider our economic, quality and environmental regulation and create medium and long-term plans that meet requirements.
Future plans to 2025
Our long-term plans are ambitious, and they need to be to meet the challenges posed by climate change and rapid population growth. We must work closely with our regulators to make sure we take a pragmatic approach to planning and delivery, as we look to balance the cost of adapting our infrastructure with keeping bills affordable.
Investors
We aim to deliver a sustainable long-term return to our investors. We do this through financial risk management and responsible business practices and decision-making. Regulatory price controls align shareholder value with customer and environmental priorities. Due to poor performance we have not paid any dividends since 2017.
Future plans to 2025
Our website contains information about our delivery and updates on pollution incidents, flow and spill reporting, wastewater treatment compliance, bathing water compliance, emissions and river levels. We will continue to add to this information to keep investors informed.
Southern Water Annual Report and Financial Statements 2022–23