PERFORMANCE PEOPLE PLANET
2019/20 ANNUAL PERFORMANCE SUMMARY AND CORPORATE SOCIAL RESPONSIBILITY REPORT 2 PERFORMANCE, PEOPLE AND PLANET 2019/20 3
GOOD TO KNOW PURE KNOW H2OW
HOW WE INVEST IN
ABOUT US YOUR WATER SHARED KNOW H2OW 526 MILLION LITRES OF WATER A DAY – that’s We supply top quality drinking water WHERE EACH £1 OF Through “Shared know h2ow” to 2.2 million customers in Kent, Surrey, YOUR BILL IS SPENT we aim to develop a sustainable how much water we Sussex, Hampshire and Berkshire. BY THE APPOINTED legacy by working together with supply to 2.2 million WATER BUSINESS people. Through a network of 14,780 kms of all those who are impacted pipe, we deliver 526 million litres of by our service. water every day. The skill and expertise GETTING THE WATER TO YOU 45% of our employees ensures our customers’ water meets the highest of standards. 83 WATER TREATMENT Everything we do is underpinned by WORKS – that’s how we technical excellence. ensure our water is of the highest quality.
OUR VISION WATER Our vision is to be the water company TREATMENT 22% people want to be supplied by and want to work for. 500,000 WATER QUALITY TESTS EACH YEAR – that’s how we ensure your water meets the highest OUR REGIONS INTEREST standards. & TAX 15%
WATER WESTERN 14,780 KMS OF WATER EXTRACTION 9% REGION MAINS – that’s how we bring fresh drinking water direct to your tap. EASTERN REGION CUSTOMER SERVICE 8%
DIVIDENDS* 1% 959 EMPLOYEES – that’s how we make sure your water supply runs 24 hours a day, 365 days a year. * Dividends allocated to the appointed business less interest received on the parent company loan. For further investment information, please see our Annual Financial Performance Report. SOUTHEASTWATER.CO.UK 4 PERFORMANCE, PEOPLE AND PLANET 2019/20 CONTENTS 5
OUR OUR PEOPLE… OUR PEOPLE… OUR PEOPLE… OUR OUR APPROACH OUR CUSTOMERS OUR COMMUNITY OUR BEHAVIOUR PLANET PERFORMANCE We aspire to be long term Our customers’ priorities lie at Our infrastructure delivers We strive to inspire and We have a strong track record of We take our commitments to stewards of our community, the heart of all we do. Learn a reliable service to our motivate our people and having a positive environmental our customers very seriously the environment and our more about how we are working customers. Find out about how partners. Learn more about impact. See how we are managing and strive to achieve our business. We act in an to improve our customers’ we are investing in our local how we are a good neighbour, the environmental impact of targets. Check how we have environmentally sustainable, satisfaction, how we try to communities. See how we are take account of the views our operational and investment performed and how we assure economically beneficial and ensure our customers receive investing to reduce the risk of those with a stake in our activities. our data. socially responsible manner. the best levels of service and of low pressure, leakage and business and foster good the ways that we are improving how we are working within our working relationships with OUR APPROACH 67 Performance summary 85 INTRODUCTION 6 our communication. communities to improve our them. OUTCOMES Performance tables 86 How we do business 15 overall service. OUR APPROACH 19 OUR APPROACH 49 Leakage level 69 Assurance summary 96 OUR APPROACH 33 OUTCOMES OUTCOMES Meeting the water deficit 70 Our future 97 Customer satisfaction 20 OUTCOMES We are compliant Number of breaches Outcome definitions 101 Interruptions to with health and of abstraction licences, Customers consider customers’ water supply 35 safety regulations 56 discharge consents and bills to be value for environmental permits 71 money and affordable 28 Low pressure 35 We are compliant with national Number of pollution Service incentive Mean zonal compliance 42 security obligations 56 incidents (category 1-2) 80 mechanism 28 Water main bursts 42 We are compliant with Carbon emissions 80 Customer Challenge Discolouration contacts 43 other statutory obligations Group 30 We will monitor our and licence conditions 57 Number of sites abstraction at low flows at risk of flooding 43 at environmentally sensitive sites 81 Above ground asset performance 44
INNOVATING TO WORK SMARTER One of our new electric hybrid vehicles
SOUTHEASTWATER.CO.UK 6 PERFORMANCE, PEOPLE AND PLANET 2019/20 7 OUR APPROACH
INTRODUCTION I am delighted that David Hinton will succeed me PERFORMANCE SUMMARY 2019 TO 2020 in the role of CEO. He has many years experience During the final year of our 2015 to 2020 business within the organisation and was instrumental plan, the whole company has worked hard to in developing the 2020 to 2025 five year plan as deliver the ambitious objectives set in 2014. South East Water is a business dedicated to well as our responsible business strategy. supplying top quality drinking water to our Alongside reporting on our outcomes, we hope 2.2 million customers across the south east. this document gives you a sense of what it’s Those customers not only entrust us with THIS REPORT INTO OUR BUSINESS like behind-the-scenes of the business and the keeping their taps flowing but ensuring their hard work staff put in to build and develop the FOCUSES ON family and friends stay healthy too. company to make it the best it can be. Everything we do is inspired by our vision “to be the water company people want to be supplied by and want to work for.” A theme which runs through this entire document.
Governed by the 25 performance commitments set in 2014/15, this report lays out our performance PERFORMANCE during the final year of the regulatory period, Throughout the report we have 2019/2020, while also presenting our stretching highlighted our performance targets outcomes over the full five years. against the outcomes we have Each commitment and value helps us focus promised to deliver. The final section summarises on how we run our business today while also PAUL BUTLER PAGE planning for the long term. Within this document MANAGING DIRECTOR PEOPLE OUR PERFORMANCE 85 you will see how these commitments and values Whether it’s our and we also look to influence our approach. As one regulatory period ends, another CUSTOMERS PAGE 19 THE FUTURE PAGE 97 at how we plan to continue While we are passionate about delivering a begins and with it a set of 38 new challenging COMMUNITY PAGE 33 to improve. five-out-of-five service for our customers we are performance commitments and 10 responsible or our own business measures which will drive us forward equally dedicated to supporting and developing BEHAVIOUR PAGE 49 during the next five years. The latter pages of our staff as well as preserving and enhancing our interactions with the the environment. this document provide a brief overview of how we plan to deliver more as a business while people who matter to our A fundamental part of our company DNA is how reducing the average bill. business is vital to our we, as a business interact with the world around success. us. We aim for all our business processes to be We have developed a clear purpose statement PLANET united in ensuring we act in an environmentally which we are in the process of embedding and is sustainable, economically beneficial and socially a key step in our move to focus the business on Clearly the supply and quality of the responsible manner. what matters to customers, the community and water resources we have available society. You can read more on page 19. to us is greatly influenced by the We continue to work with schools to inspire environment from which we source I retire in July 2020, having served as Managing pupils in the areas of science, technology, our water. engineering and maths through the STEM Director at South East Water and previously Mid OUR PLANET PAGE 67 programme as well as utilising the expertise of Kent Water for 18 years. It has been a privilege PhD students to assist on a range of projects. to oversee three price reviews since the merger details how we work to improve the of South East Water and Mid Kent Water in 2007 environmental impact and work with We are expanding our partnerships with charities and see the company develop into one which others to ensure we are guardians and organisations such as Refill while ensuring puts customer satisfaction at its heart and has a of the environment. our staff have the support they need as well as strong future. being fairly rewarded and recognised for the work they do.
SOUTHEASTWATER.CO.UK 8 PERFORMANCE, PEOPLE AND PLANET 2019/20 9 OUR APPROACH
INTRODUCTION continued
We are committed to providing the best service WE ARE DELIGHTED TO HAVE As well as presenting this report, our to all our customers and retailers who rely on the performance can be compared with wholesale water service we provide. BEATEN OUR LEAKAGE TARGET other water companies by visiting FOR THE 18TH YEAR IN A ROW. www.discoverwater.co.uk which has been AS A MAJOR LANDOWNER, For some of our outcomes we are able to OUR TARGET WAS 88.1 MILLION developed to provide more transparency to AND GUARDIAN OF SOME earn financial rewards, or incur penalties for LITRES A DAY the performance in the industry. OF THE REGION’S MOST performance that do not achieve our targets. PRECIOUS ENVIRONMENTAL These rewards and penalties were set following This is an important tool to enable RESOURCES, OUR TEAMS engagement with our customers during our The project was the first time, in the water stakeholders to compare our performance business plan process in 2014 (the performance industry, digital water meters, sensors and to ensure we are striving for continuous WORK HARD TO MAINTAIN table can be found on page 86). loggers have brought together data into improvement and stretching ourselves to be AND IMPROVE MANY OF one central area for advanced analysis, providing the best possible service. THE REGION’S FLORA We are delighted to end the five year period on exploring artificial intelligence techniques. AND FAUNA a high, outperforming our targets for leakage, low pressure, discolouration contacts and We always strive to keep improving the interruptions. We also delivered our lowest level quality of the water we supply. We have of mains bursts with 2,289 bursts versus a target maintained high overall water quality with of 2,429. We are not complacent and are aware 99.96 per cent of samples passing standards there’s still work to do to improve areas such as set by the Drinking Water Inspectorate customer complaints and increase our customer (calendar year January to December 2019). satisfaction scores further. We are driving forward change and are confident we will see Once again we are delighted to have beaten improvements over the next five year period. our leakage target for the 18th year in a row. Our target was 88.1 million litres a This overall performance has put us in a good day (Ml/d) and we achieved 86.4 Ml/d a day position to begin tackling the stretching targets during the year. A great foundation as we set for the next five year period 2020 to 2025. launch into the next five years where we have a target to reduce it by a further 15 Working in partnership with vulnerable customer per cent by 2025. charities and colleagues from other water companies and utilities throughout the year has As a major landowner, and guardian of some resulted in us reaching out and helping more of of the region’s most precious environmental those who need it most. Ensuring the benefits resources, our teams work hard to maintain and assistance our dedicated Customer Care and improve many of the region’s flora Team can provide are fully advertised has seen an and fauna. This work has resulted in the increase in customers signing up to our Priority successful conclusion of a ground-breaking Services Register. trial to increase biodiversity at a number of our sites as part of the Water Industry Our year long smart water network trial National Environment Programme (WINEP). successfully concluded in the Hartley district of You can read more about this five year Kent. Attracting attention from across the world, programme on page 72. the results are currently being analysed and early indications show the project could help us drive down the amount of water lost to leaks, helping us hit our ambitious leakage target in the future.
SOUTHEASTWATER.CO.UK 10 PERFORMANCE, PEOPLE AND PLANET 2019/20 11 OUR APPROACH
INTRODUCTION continued
PERFORMANCE SUMMARY OUR SERVICE INCENTIVE THANK YOU South East Water has drawn on the enormous 2015 TO 2020 strength and commitment of its leadership MECHANISM (SIM) AND In my final Performance Report as Managing team together with each and every employee. The past five years have brought many CUSTOMER SATISFACTION Director, I would like to express sincere thanks All have stepped up with professionalism and challenges for the business, as well as many to every single South East Water employee and determination to confront a fast-changing and opportunities which the whole company has SCORES BOTH IMPROVED OVER business partner, past and present, who has uncertain situation. worked tirelessly to make the company what embraced. Our people have worked extremely THE PERIOD it is today. hard to exceed the challenging objectives set I want to wish everyone and my successor, within the 2014 business plan. David Hinton, all the best for the future and the During the past 18 years, it has been my pleasure exciting and challenging times it will bring as and honour to have led a team which shares a With our customers at the centre of what we do we continue to reach the company’s ambition Our leakage levels decrease year-on-year and united dedication and passion to always put the we have halved the number of customers across our dedicated Customer Care Team makes sure to be the water company customers want to be customer first, going above and beyond to make supplied by and people want to work for. our supply area at risk of low pressure. We have we are offering the best service possible to those sure our service is second to none. reduced the duration of interruptions for each with additional needs. This was recognised in I hope you enjoy reading this report which property served from 32 minutes to 10 minutes 2018 when we became the first water company That determination once again shone though highlights our performance over the past year and we have improved resilience by reducing to receive the coveted British Standards when, towards the end of another successful and also gives insights into our dedication to the number of sites at risk of flooding from Institution (BSI) verification certification year, the business worked together tirelessly as improve our service to customers, the working 55 to zero. BS 18477. one to ensure service was maintained with the life of our people and the environment in emerging, unprecedented and ongoing threat which we live. Our Service Incentive Mechanism (SIM) and During the five year period we have brought from the Covid-19 pandemic. Our essential role customer satisfaction scores both improved innovation to the forefront with dedicated in society has never felt more important. PAUL BUTLER over the period. Innovation Champions fully established and MANAGING DIRECTOR 15 JULY 2020 pushing forward new ideas, as well as using the In 2018 we were reminded how heavily the water latest technology to make big improvements to industry is influenced by the weather. The year the way we tackle issues such as leakage. started with Beast from the East, snow and freezing temperatures followed by a very swift Alongside this we continue to develop and thaw resulting in an unprecedented number support our people through the implementation of bursts in customer properties and on our of a new iReview system, training and a new extensive pipeline network. A few months later mental health strategy designed to put mental a heatwave saw demand soar and customers in health on a par with physical health. You can read AWARDS WON AWARDS SHORTLISTED FOR some areas using water faster than we could more on pages 50 and 59. • South East Water Scientific We have been shortlisted for four extract, treat and pump it to taps. Throughout Services won SME News Water awards at the WWT Water Industry these challenges, like with so many more, our We ended the period as the Covid-19 pandemic Utility Company of the Year Awards 2020. The ceremony is due to take place in July 2020 people and contractors worked tirelessly with took hold. While we do not yet know how this • The Environment team won just one thing at the forefront of their minds, will shape the future of the business, what we two Green Apple awards for • Water Company of the Year their Pesticide Amnesty doing the best for our customers. The lessons do know is that our people, designated as Key • Data Project of the Year and Woodgarston Markets project learned from these two events have been put Workers, once again continued their tireless – Smart Water Network into action over subsequent years, ensuring that work to keep taps flowing no matter the • Water Innovation Project of the Year – Smart Water Network taps keep flowing whatever the weather. challenge they face. 308 • Skills and workforce innovation of the year – Developing a business wide innovation champion community
SOUTHEASTWATER.CO.UK 12 PERFORMANCE, PEOPLE AND PLANET 2019/20 13 OUR APPROACH
Successfully secured land OUR YEAR 2019/20 at the former Aylesford Newsprint site in Kent enabling us to develop and build a new multimillion Celebrated the pound water treatment 100th anniversary Trained up a further 14 works which will treat of our water mental health first aiders 18.2 million litres of water treatment hub at who provide invaluable a day when complete Boxalls Lane support and guidance to in Aldershot staff requiring assistance bringing the total across Put the mental health of our the business to 30 people centre stage holding a dedicated conference to launch our new mental health strategy which works to remove the fear of stigma many feel when discussing Staff were designated mental health, creating key workers during the Signed a new five year parity between mental and Covid-19 pandemic giving integrated partnership physical health our people fresh focus and contract with Clancy energy while delivering to deliver all repairs, exceptional service maintenance, planned during a period of great mains renewals, uncertainty new mains and new connections across our Successfully completed supply area the Smart Networks trial Delivered £104.5 million which has been shortlisted of investment to improve for multiple awards and our infrastructure will become one of our key providing better water activities for identifying quality and reliability hidden leaks on our pipeline for customers network going forward
Began preparations to implement our most ambitious and innovative business plan yet which includes 38 stretching performance commitments and 10 Became the first water responsible business measures company to partner with the Our water resources that are central to driving us Women’s Utility Network management plan (WRMP), forward up to 2025 (WUN), an organisation which takes a long term dedicated to encouraging view of how we’ll secure greater industry diversity water supplies for and better career customers over the next progression for women in 60 years, was approved by the utilities sector the Secretary of State and published in August 2019
SOUTHEASTWATER.CO.UK 14 PERFORMANCE, PEOPLE AND PLANET 2019/20 15 OUR APPROACH
OUR 2015 TO 2020 “COUNT ME IN” APPROACH Every customer counts – Our customers’ priorities lie at the heart of everything we do HOW WE DO BUSINESS Everyone counts – We inspire and motivate our people and partners Every action counts – Our operational performance is safe, effective and efficient
Every drop counts – Our infrastructure delivers For the period 2015 to 2020 we introduced a This report details our work, including our work a reliable service to our customers range of measures and targets to track our to improve the biodiversity on our land and Our future counts – We plan effectively for performance. These targets are based on the to keep interested stakeholders informed of the long term outcomes our customers have told us they want. our progress.
How our customers feel about the service we We monitor and evaluate our performance deliver is equally as important as the range through this annual Performance, People and of measures we have in place to track our Planet report, which will help you learn more operational performance. about how we operate as a responsible business.
An outcome is effectively the performance commitment we’ve made about how we do OUR VISION AND STRATEGY business – it sets out what we are trying to achieve, rather than just what we will do. In 2015/16 we launched a new vision and values to support our strategy to achieve our outcomes Outcomes allow us greater flexibility in the way for the five year regulatory period. we deliver our water supply service instead of focussing only on outputs. It moves us away We put both customers and our people at the from delivering specific activities, to focusing heart of our vision for the future, which is to be on whether the activities we undertake are the the water company people want to be supplied right ones to achieve what customers have told by and want to work for. us is important to them. An outcome also needs to meet the expectations of our regulators and ACHIEVING OUR VISION those with an interest in our business. To support the delivery of our vision we More information about our outcomes, how we developed five strategic themes which helped us have performed, our targets, the challenges we focus on how we run our business today and how face and the work we have done to meet our we plan for the long term, with our employees commitments is included in each section of this ensuring our customers are the priority in report. A summary table of our performance everything we do. OUR CORE VALUES and detailed definitions can be found in the Trust – Dependable, safe and sound, as a “our performance” section (page 85). team always delivering on our commitments. OUR CORE VALUES In addition to our outcomes there are a large Guardians of the environment range of statutory regulations that we must Core values support our vision and commitments, Passion – Dedicated to delivering a safe, comply with and key performance indicators that and reflect what South East Water is all about. reliable service, always caring for our we are required to report. In particular, there Through workshops and interviews with customers and each other are a large number of environmental reporting employees talking about what it’s like to work requirements to which we must comply including Agility – Responsive, flexible and adapting here, what our people stand for, what customers Biodiversity 2020 and Natural Environment quickly to change expect of us and what characterises the way we and Rural Communities Act, 2006. As extensive Creativity – Fresh thinking, improving, never deliver our service, we created and defined our landowners, we take our responsibility as standing still own unique set of core values. guardians of the environment seriously. Excellence – Striving at all times to be the best and deliver the best
SOUTHEASTWATER.CO.UK 16 PERFORMANCE, PEOPLE AND PLANET 2019/20 17 OUR APPROACH
MEASURING SUCCESS OUTCOMES We measure our success HOW WE DO BUSINESS through continuous monitoring and reporting of our outcomes OUR PURPOSE “To provide today’s public water service and create tomorrow's water supply solutions, fairly and responsibly, working with others to help society and the environment to thrive.” 5
CUSTOMER SATISFACTION PARTNERS 1 6 OUTCOMES We aim to deliver a five-out-of-five service VALUES to deliver complete Core values support our vision and customer satisfaction commitments, they shape our culture and EMPLOYEES 2 reflect what South East Water is all about VISION TRUST Our vision, “to be the water Dependable, safe and sound, as a team company people want to always delivering on our commitments. INVESTORS be supplied by and want to Guardians of the environment work for”, is the source of our inspiration and is the start of our journey PASSION Dedicated to delivering a safe, reliable service, always caring for our customers REGULATORS and each other
AGILITY Responsive, flexible and adapting COMMUNITY quickly to change
CREATIVITY Fresh thinking, improving, never CUSTOMERS standing still
CONTINUOUS EXCELLENCE Striving at all times to be the best ENGAGEMENT and deliver the best 4 Everything we do involves engagement with those who have a stake in our business COMMITMENTS Every Every Every Every Our BUSINESS customer one action drop future Five strategic themes counts counts counts counts counts ENVIRONMENT help us to focus on 3 7 There are many factors achieving our vision that feed into our process whether from the external Our customers’ We inspire and Our operational Our infrastructure We plan environment (such as political priorities lie motivate our performance is delivers a reliable effectively at the heart people and safe, effective service to our for the long and regulatory), environmental, of everything partners and efficient customers term social and technological, or we do internal factors of our people, assets and financing
SOUTHEASTWATER.CO.UK 18 PERFORMANCE, PEOPLE AND PLANET 2019/20 19 OUR CUSTOMERS
OUR PEOPLE... OUR CUSTOMERS
OUR APPROACH ON AVERAGE, OUT OF FIVE, “Every customer counts” ensures that OUR CUSTOMERS our customers’ priorities lie at the heart SCORED US of all we do. We aim to provide a service to customers to make us a provider of choice.
We are committed to increasing customer satisfaction across a range of measures, responding to the challenges set by our satisfaction with the frequency and customers. 4.6 duration of interruption to their supply We have developed an innovative approach to the outcomes agreed in our 2015 to 2020 4.3 satisfaction with the taste and odour of business plan, using a monthly customer their water satisfaction survey.
We wanted to focus on all customers, not 4.3 satisfaction with the water pressure just those who contact us, giving the silent experienced in their home majority a voice. This helps us to better understand what influences customer satisfaction and allows us to react to their 4.5 satisfaction with the appearance views constantly. of their water
Across the company at every level there is a determined focus to achieve five-out-of- 3.6 satisfaction with the level five and a commitment that ensures every of leakage customer counts. 4.4 satisfaction with the frequency of water use restrictions, of which there were none in the year WE FOUND THAT 4.3 satisfaction with the direct interaction they experienced
74% on average 74 per cent of customers surveyed in our annual tracking survey thought our bills were value for money. An increase of 1 per cent from last year
33% there was a 33 per cent decrease in complaints versus last year
SOUTHEASTWATER.CO.UK 20 PERFORMANCE, PEOPLE AND PLANET 2019/20 21 OUR CUSTOMERS
OUR PEOPLE... OUR CUSTOMERS continued
These new engagement routes will continue This will remain a high priority area for OUTCOME to develop on our six attitudinal segments improvement but the work we have done has and provide a robust on-going barometer for informed our plans in this area and enables us to customer satisfaction this year and for the next track the success of future work. five years. We have continued to promote the importance During the year, and through our innovative of reducing water use amongst our customers CUSTOMER SATISFACTION We have maintained our focus on customer smart network trial, we have continued with and increased the range of free and subsidised experience improvement over the year through our focus on improving customer perception of water saving devices we offer. Customer We were the first water company to develop the Introduction of our Customer Insight and leakage. This is often a customer perception that satisfaction can be influenced heavily by our a range of outcomes based on customer Strategy Team. This has provided a key focus is heavily influenced through external media but support to reduce usage and how they perceive satisfaction. Traditionally, water companies have for all customers across the organisation to we have continued to improve our ‘In your area’ the service as good value for money and so our focused on output based measures, for example improve customer experience and engagement. messaging and specific communications with research and engagement with customers in this the number of customer complaints, rather than In line with customer expectation we have customers about leaks in their area. area has continued through a trial experiment of focusing on how satisfied customers are and how enhanced our online presence for customers Water Use Reports with our partner Advizzo. they feel about the service they receive from through our My Account digital platform which their water company. Unlike historic measures, now has 212,624 customers signed up. We have we also wanted to focus on all customers, not also made improvements to the transactions CUSTOMER SATISFACTION PERFORMANCE just those who contact us and therefore give the that are available for our customers, including silent majority a voice. Final the capability for customers in vulnerable determination Variance Variance Variance Each month approximately 130 customers are circumstances to be able to register for our CUSTOMERS target 2015/16 2016/17 2017/18 2018/19 2019/20 to to to CONSIDER… 2019/20 Actual Actual Actual Actual Actual 2018/19 2015/16 target randomly selected to undertake a telephone Priority Services Register online.
survey to understand how satisfied they are with While we supply drinking water to our Appearance of seven aspects of our service: their water to ↓ customers, wastewater is taken away and be acceptable 4.6 4.4 4.5 4.5 4.5 4.5 0= 0.1 (0.1) treated by either Southern Water or Thames • appearance of their water Water depending on the area. To make life easier Taste and • water pressure for our customers we have an agreement with odour of their
water to be ↓ both Thames Water and Southern Water to bill ↓ • taste and odour acceptable 4.3 4.1 4.2 4.2 4.2 4.3 0.1 0.2 0.0 for wastewater on their behalf, therefore our • supply interruptions
customers only receive one bill. Level of • leakage leakage to be ↓ We have continued to develop our resilient acceptable 4.0 3.4 3.8 3.8 3.6 3.6 0= 0.2 (0.4) • water restrictions customer strategy based on work undertaken with our teams, customers and stakeholders Their direct • direct interaction interaction
and which forms part of our overall resilience experience to Customers are asked to give a score out of five ↓ assessment. This will be fully published in 2020 be positive 4.5 4.2 4.3 4.3 4.3 4.3 0= 0.1 (0.2) where one is ‘completely dissatisfied’ and five is and forms part of our ever growing toolkit of ‘completely satisfied’. initiatives that will enable customers and the Their water community to improve their own experience but supply is of
sufficient also enhance resilience. ↓ HOW HAVE WE PERFORMED? pressure 4.5 4.2 4.2 4.3 4.3 4.3 0= 0.1 (0.2) During the year we have continued research Customer satisfaction scores have remained The frequency engagement programme on a broad range of stable for the majority of measures, our taste and duration customer satisfaction measures ranging from of supply and odour measure has seen a slight increase customers struggling to pay, on our Priority interruptions is in satisfaction to bring it in line with target for Services Register all the way through to general acceptable 4.7 4.6 4.6 4.6 4.6 4.6 0= 0= (0.1) the year. We know that customer expectations customers and stakeholders. are continually increasing and we will continue The frequency to strive to reach the target set. Our customer of water use
restrictions to satisfaction measures have challenged us to ↓ be acceptable 4.1 4.2 4.4 4.4 4.4 4.4 0= 0.2 0.3 re-assess every aspect of our business and how this can impact on our customers. SOUTHEASTWATER.CO.UK 22 PERFORMANCE, PEOPLE AND PLANET 2019/20 23 OUR CUSTOMERS
FOCUS ON UNITING TO HELP OUR VULNERABLE CUSTOMERS
Improving the way we work with vulnerable In addition to the Utilities Network Partnership customers is a priority for all utility companies we have been working closely with UK Power and recently we were one of a range of Networks in particular to develop a collaborative companies which came together to jointly partnership surrounding vulnerability. promote our services to customers. We meet quarterly to understand how we can Working with nine water, electricity and gas best work together to reach those most in need, distribution companies we created an animation such as collaborating with local stakeholders and to promote the Priority Services Register, a using their insights to improve our initiatives as service that all utilities provide for people well as improving the services that we offer for needing extra support for a variety of reasons. all of our customers. We are all members of the Utility Networks Andy added: “Taking care of our customers is at Partnership and have been working closely the heart of everything we do and what matters together to help customers living in vulnerable most to us as we understand that these essential circumstances for the past two and a half years. services are our customers’ lifelines and this is The film was produced in collaboration with more truer today than ever.” ourselves, Affinity Water, Anglian Water, Find out more or register at Northumbrian Water Group, SES Water, SGN, southeastwater.co.uk/priority Southern Water, Thames Water and UK Power Networks. Andy Clowes, Head of Customer Insight and Strategy, said: “We came together as a sector FACT FILE because we all want to make the Priority Services Register easier to use, giving our THE PRIORITY SERVICES REGISTER IS AVAILABLE customers extra support when they need TO CUSTOMERS WHO: it most. RELY ON MEDICAL EQUIPMENT “By using our joint collective voice we can amplify the message through all our channels HAVE REFRIGERATED MEDICINES and contacts to ensure information about the register and how to sign up reaches those who ARE LIVING WITH A SERIOUS OR need it most.” CHRONIC ILLNESS In another joint initiative, we came together to donate a total of £500,000 to community HAVE A DISABILITY OR HAVE projects during the Covid-19 pandemic. We COMMUNICATION NEEDS supported local community foundations to ensure the funding got to where it was needed ARE LIVING WITH DEMENTIA most, boosting community resilience. ARE OF PENSIONABLE AGE Projects included foodbanks, volunteer centres, food delivery services and outreach programmes HAVE CHILDREN UNDER FIVE IN THE HOME for those in isolation. OR NEED EXTRA SUPPORT FOR A SHORT TIME DUE TO LIFE CHANGING EVENTS LIKE BEREAVEMENT
13,512 TOTAL CUSTOMERS SIGNED UP TO OUR PRIORITY SERVICES REGISTER
OUR PRIORITY SERVICES REGISTER Provides for people needing extra support for a variety of reasons SOUTHEASTWATER.CO.UK 24 PERFORMANCE, PEOPLE AND PLANET 2019/20 25 OUR CUSTOMERS
FOCUS ON PARTNERSHIP WORKING TO HELP THOSE WHO NEED IT MOST
Our dedicated and passionate Customer Care Team works across our supply area helping those who need a little extra help, from signing customers up to our Priority Services Register, to providing information in different formats such as audio bills or an alternative language.
While helping customers directly is at the heart of what the teams do, we understand that many customers are supported by vital charities who provide specialist services to those who need it.
We recognise that by working with those “While the Customer Care team works with charities, we can improve our offer to customers many charities on a daily basis, holding events who need assistance, while also ensuring more like these is a particularly effective way to share people and organisations are aware of the learning, build new partnerships and strengthen services we provide. existing ones. It helps everyone to better assist those that need support.” In September we brought representatives from various charities together under one roof to find out more about how we can help them, and in turn, our customers who are most in need.
We were keen to ensure those organisations had the latest information on what we offer those I FOUND THE EVENT REALLY who need extra support, whether indefinitely, or INSIGHTFUL, AND THINK THAT just for a short period of time, and how previous partnership working with them has helped shape THERE WAS A LOT OF REALLY our latest vulnerable customer strategy. USEFUL INFORMATION WHICH The event also gave the charities the I CAME AWAY FROM THE DAY opportunity to let us know how we can get more WITH. KNOWING ABOUT YOUR involved in their activities, ensuring we provide PRIORITY LIST, FOR EXAMPLE, the right help and that we reach those we may not have done in the past. Representatives IS ONE REALLY USEFUL PIECE were also able to provide feedback on what we OF INFORMATION WHICH I WILL do as it’s important we constantly adapt to our NOW BE ABLE TO KEEP IN MIND customers changing needs. FOR ANY SERVICE USERS WHO Zoe McLeod, Chair of our independent Customer PERHAPS MENTION THEY ARE Challenge Group, said: “It was a really good event. EXPERIENCING DIFFICULTIES. “In particular, attendees found it very useful to IT IS ALSO GREAT TO SEE THAT meet key members of staff at South East Water YOU INCORPORATE MENTAL and learn about the range of services the water company has available to help its customers on HEALTH CONSIDERATIONS INTO low incomes and with additional needs. YOUR DIFFERENT TARIFFS TOO. I THOUGHT THAT WAS VERY
VULNERABILITY STRATEGY INNOVATIVE QUOTE FROM MIND AND CUSTOMER CARE TEAM Helping customers directly is at the heart of what the teams do SOUTHEASTWATER.CO.UK 26 PERFORMANCE, PEOPLE AND PLANET 2019/20 27 OUR CUSTOMERS
FOCUS ON
RETENTION OF THE BSI STANDARD FOR INCLUSIVE SERVICE VERIFICATION
Not only were we the first water company to “The audit provides third party recognition that gain the BSI accreditation 18477: Inclusive we’re doing the best we can for our customers Service Verification we were also the first to while also providing insights into where retain it for a second consecutive year. additional improvements can be made. The standard demonstrates that our services “We are continuously challenging ourselves are available, usable and accessible to all to improve and the BSI structure provides a our customers, regardless of their individual foundation on which we can build our vulnerable circumstances. customer provision to ensure we’re doing all we Annual assessments are undertaken against can for those who need our help the most.” strict and clear criteria through on-site audits. The accreditation covers a broad range of activities across the business and makes sure our services are accessible to all, uses easy to understand language and ensures that we adhere to our high brand standards. ENSURING ALL OUR SERVICES Andy Clowes, Head of Customer Insight and ARE EASILY ACCESSIBLE AND Strategy, said: “Ensuring all our services are easily accessible and understandable for all UNDERSTANDABLE FOR ALL IS is something we take pride in and is key to SOMETHING WE TAKE PRIDE IN retaining the BSI accreditation. “While the audit can be intense as we check through all relevant aspects of the business from strategy to process delivery, it does provide us with a clear framework to support our continual development and improvement.
BSI ACCREDITATION 18477 All our services are easily accessible and understandable for all SOUTHEASTWATER.CO.UK 28 PERFORMANCE, PEOPLE AND PLANET 2019/20 29 OUR CUSTOMERS
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OUTCOMES
CUSTOMERS CONSIDER BILLS SERVICE INCENTIVE MECHANISM While SIM was a measure of customer • improved communications on the In Your TO BE VALUE FOR MONEY AND satisfaction the new C-MeX measure covers a Area platform which provides customers with The service incentive mechanism (SIM) is a broader range of customer measurement and updates and information about operational AFFORDABLE water industry customer satisfaction measure not only measures the satisfaction of customers activity in their area that may affect them. designed to encourage companies to provide a Customer satisfaction with value for money is who have contacted us but also adds the • enhanced and simplified communications to better service to their customers. The measure is additional lens of surveying customers who have measured through our annual tracker survey. our customers about budget payment plans to split into two parts: not contacted us. Our overall C-MeX score rose ensure that they are much clearer and simple Our annual tracker survey is a tool to help us steadily over the last year, ending in a score of • Qualitative for customers understand customers’ priorities and how they 73.36. This score correlates very closely to our 75 per cent of the score is derived from 200 might change over time. positioning in the SIM measure. This measure Customers who email us during opening hours random customer satisfaction surveys on a will be linked to financial incentive reward and receive a response to their requests within The survey was conducted during November and scale of one to five. Customers are randomly penalty during 2020 to 2025. two hours. December 2019 and received responses from selected following billing, technical and more than 2,400 customers. An online version of operational enquiries As expected we saw a reduction of 33 per cent We also ask customers at our open days whether the survey was also promoted through the home in customer complaints over the year compared they are satisfied with our service, both before Quantitative page of our website. • to 2018/19, which was impacted by the ‘one bill’ and after their tour of our treatment works. The The remaining 25 per cent is based on: process, this being the combined bill we issue results consistently show that once customers • number of unwanted telephone contacts which includes Southern Water’s wastewater have received an insight into the process that we HOW HAVE WE PERFORMED? • written complaints charges. undertake to bring water to their taps they are This year the score for “Customers consider bills • 2nd level written complaints and happy that they receive good service from us. to be value for money and affordable” was 74 • Consumer Council for Water (CCWater) We have over the year focused on developing Scores increased from an average of 7.9 before per cent, which is one per cent higher than our investigations a programme of activities that responds to the tour to 9.6 after (where one is very poor and score in 2018/19. Our target for this year is 80 the evolving needs and expectations of all 10 is excellent). per cent. We are disappointed in not meeting our customers and which will directly contribute target for the five years however, we have seen HOW HAVE WE PERFORMED? to improvements to our C-MeX scores. This a small increase throughout the period. Going We reported a final SIM score of 78.43 as a proxy includes the scheduled implementation of our forward we will continue to report our customers measure to Ofwat and a key indicator of our enhanced My Account digital platform providing FACT FILE satisfaction with value for money using our performance, despite this no longer being a enhanced real time self-serve capability to monthly customer surveys. performance commitment. During 2020 to 2025 customers along with water usage and efficiency 1,225 WRITTEN COMPLAINTS COMPARED TO this has now transitioned to the new Customer comparison data as well as the introduction of Measure of Experience Score (C-MeX) and during new simplified bills for customers. 1,821 IN 2018/19 the last year we have been participating as part Over this year we have made a number of 33,575 of a shadow year to better understand this improvements that will enhance the customer CUSTOMERS ON OUR SOCIAL TARIFF new measure. experience, these include: 5,220 • enhancement of our customer systems to CUSTOMERS ON OUR WATER SURE TARIFF enable the simplification of approach to managing customer processes. This change 13,512 ensures consistent management of the CUSTOMERS ON OUR PRIORITY SERVICES customer journey and ensures an effortless REGISTER experience
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CUSTOMER CHALLENGE GROUP OUR GROUP
During the business plan process all water companies were required to have a Customer Challenge Group (CCG). While some companies have not continued with their group we have decided to maintain this independent panel. THE CUSTOMER CHALLENGE Chaired by consumer champion Zoe McLeod GROUP HELPS TO ENSURE it comprises of representatives from the THAT THE CUSTOMER AND CCW, Environment Agency, Natural England, customers, councils and charities. COMMUNITY VOICE IS AT THE HEART OF OUR DECISION The CCG helps to ensure that the customer and ZOE MCLEOD RUPIKA MADHURA PENNY SHEPHERD MBE community voice is at the heart of our decision CHAIR OF THE ECONOMIST AND PRICE CONSUMER COUNCIL MAKING AND HOLDS US TO making and holds us to account for the promises CUSTOMER CONTROL EXPERT FOR WATER (CCW) CHALLENGE GROUP ACCOUNT FOR THE PROMISES we make. The group focuses on delivery and REPRESENTATIVE WE MAKE engagement and has provided robust and transparent challenge to us in the following areas:
• our approach to innovation • our responsible business commitments • vulnerability • resilience • leakage and customer interruptions
• our engagement strategy DR LOUISE BARDSLEY LESLIE SOPP JON SELLERS • the water resources management plan NATURAL ENGLAND INDEPENDENT MARKET ENVIRONMENT RESEARCH AND CUSTOMER AGENCY • Operational Delivery Incentives INSIGHT EXPERT
To find out more about the work of the group and/or how you can get involved go to customerchallenge.co.uk
KAREN GIBBS JANET HILL RICHARD LAVENDER CONSUMER COUNCIL COMMUNITY DIRECTOR, KENT FOR WATER (CCW) REPRESENTATIVE INVICTA CHAMBER REPRESENTATIVE OF COMMERCE
SOUTHEASTWATER.CO.UK 32 PERFORMANCE, PEOPLE AND PLANET 2019/20 33 OUR COMMUNITY
OUR PEOPLE... OUR COMMUNITY
OUR APPROACH For the community we serve the work we do The site is currently capable of treating up to behind-the-scenes makes a huge impact on the 45 million litres of fresh drinking water per service they receive. day and we are extending the works to be The drinking water we provide is fundamental to able to treat up to 68 million litres per day in the health and quality of life of the population in order to secure water supplies for current and our supply areas. future customers across Berkshire, Surrey and Hampshire. The project is due to complete We supply our community through a network in 2020. of complex assets; we work to ensure that this infrastructure delivers a reliable service Schemes such as this one are supporting our to the homes and businesses in our area. The efforts to improve services for our customers investment we do is targeted to ensure that we and help safeguard the environment, and we continue to reduce levels of low pressure and are committed to continuing this level interruptions to supply. of investment. We continue to invest in our infrastructure network so that we can provide our customers with high quality water. This year we invested FACT FILE £104.5 million to deliver our capital programme
which saw: 25 PROPERTIES ARE AT RISK OF LOW • £38.9 million spent maintaining our water PRESSURE ACROSS OUR SUPPLY AREA treatment works, drinking water storage reservoirs and pumping stations 2,635 • £22.4 million on renewing and replacing PUPILS PARTICIPATED IN OUR SCHOOL our underground pipeline infrastructure TALKS PROGRAMME which delivers drinking water direct to our customers 99.96% WATER QUALITY (MEAN ZONAL • £43.1 million as part of our strategic objective to improve our supply and demand COMPLIANCE) management. This includes delivering all of our
environmental improvements, and upgrading 96% the physical security on our sites up to new POSITIVE OR NEUTRAL MEDIA COVERAGE standards defined by Defra 10.0 • the purchase of an old brown-field site, where CUSTOMERS EXPERIENCED ON AVERAGE we will now build a treatment works that will 10.0 MINUTES OF INTERRUPTIONS TO in the future provide additional water to the THEIR SUPPLY IN THE YEAR Maidstone area Our largest capital scheme during this five 138 year investment programme is the £22 million VOLUNTEERS WORKED WITH US ON extension of our Keleher. Water Treatment CONSERVATION WORK Works at Bray, Berkshire which extracts water from the River Thames. MAINTAINING OUR NETWORK We're constantly investing in our infrastructure to make sure the water we supply is top quality SOUTHEASTWATER.CO.UK 34 PERFORMANCE, PEOPLE AND PLANET 2019/20 35 OUR COMMUNITY
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OUTCOMES
Our communities also benefit from the provision During the year we met nearly 2,000 customers INTERRUPTIONS TO LOW of educational, recreational and amenity through our community events, including opportunities that come from being able to those which provide assistance to the elderly CUSTOMERS’ WATER SUPPLY PRESSURE access our land, or from the contributions we and vulnerable. When a customer is without water it is classified This outcome is the number of properties at risk make through donations, organised charitable We also aim to ensure we regularly communicate as an interruption to supply. Our outcome relates of low pressure. Water pressure determines the events and the support of our employees in their via media and social media channels. During the to any interruption to supply over three hours flow of water from the tap. If pressure is not voluntary activities. year more than 170 press releases were issued in duration. This can be as a result of planned sufficient then the flow can reduce to a trickle We are committed to encouraging recreational on a range of subjects from water resources improvement works, emergency incidents such and it will take a long time to fill a kettle or a access to our land and reservoirs as a valuable to bogus caller alerts and nearly 30 interviews as a burst water main or third party damage to bath. Our target is 60 properties or less at risk of contribution to local communities. undertaken on local radio and TV. During the the network. low pressure out of our total of one million. year 96 per cent of press coverage was positive Facilities offered including walking, fishing, Our target for 2019/20 was for each property horse riding, mountain biking, nature study, bird or balanced/neutral. We aim to ensure the information we provide is useful to customers served to be interrupted by on average, less than HOW HAVE WE PERFORMED? watching, angling and sailing. 12 minutes per year and we can share our Pure Know H2ow and In 2019/20, we had only 25 properties that We aim to be a good neighbour and take passion for water this way. account of the views of our customers and the regularly received low pressure below our community in which we work, minimising our Our social media following continues to grow and HOW HAVE WE PERFORMED? minimum standards compared to a target of 60. social and economic impacts particularly when we now have 16,000 followers across our Twitter, During 2019/20 our customers experienced We continue to look for the most cost effective delivering our engineering schemes. Facebook, LinkedIn and newly implemented Instagram channels. on average 10.0 minutes of interruptions, schemes to invest in while also monitoring the outperforming the target for this year. This is a effect that new properties or businesses in an 4.2 minute improvement from the previous year area can have on water pressure. and our best performance in this five year period. In 2019/20, we completed a scheme near We have worked hard to keep interruptions to Froxfield in Hampshire where we laid 270m of supply to a minimum through our “every minute pipe and installed a booster to increase pressure counts” campaign. We have continued to focus to the local area. This scheme removed 21 on minimising interruptions to supply for our properties from receiving lower pressure than customers, on both our planned engineering our minimum standards in future. works and in response to unplanned events such as burst mains.
We are using technology and training to calm the network to reduce the likelihood of bursts, increasing the interconnectivity of our network to allow water to be fed from alternative sources and increasing critical spares, staff standby arrangements and resource location to reduce repair and interruption times.
SOUTHEASTWATER.CO.UK 36 PERFORMANCE, PEOPLE AND PLANET 2019/20 37 OUR COMMUNITY
FOCUS ON
REDUCING SINGLE-USE PLASTIC
Water bottle refill points are springing up across our supply area to encourage more people to ditch single-use plastic bottles in favour of reusable ones. A MILLION PLASTIC BOTTLES ARE The award-winning initiative, run by City to Sea, means people can fill up their water bottles SOLD EVERY MINUTE AROUND for free across the south east, with the latest THE WORLD – A FIGURE THAT’S fountain installed in Ashford, Kent. EXPECTED TO GROW BY 20 PER Ashford Borough Council came to us for support CENT BY 2021 in sourcing, installing and maintaining the water fountain as well as helping with the launch event. The water fountain in Park Mall is supplied by clean, safe tap water from our pipelines. Head of Environment, Emma Goddard, said: “We know from speaking to customers about our FACT FILE plans for the future that issues surrounding single-use plastic are hot topics. 1811 “A million plastic bottles are sold every minute WAS THE YEAR THE MODERN around the world – a figure that’s expected to HAND WATER PUMP WAS grow by 20 per cent by 2021. INVENTED BY HENRY HARRISON “The water we supply is extremely high quality FROM ASHFORD, KENT and can take as little as two hours to reach customers’ taps after starting its journey at one of our water treatment works.” We have thrown our weight behind supporting the national Refill campaign and have committed our ongoing support for the initiative within our latest five-year business plan.
RESPONSIBLE BUSINESS Continually supporting refill campaigns to reduce single-use plastic SOUTHEASTWATER.CO.UK 38 PERFORMANCE, PEOPLE AND PLANET 2019/20 39 OUR COMMUNITY
FOCUS ON
PUPILS’ POSTERS DELIVER IMPORTANT SAFETY MESSAGE
As part of £550,000 project to upgrade an Lindsey said: “We’re extremely grateful to South old water main within the historic village of East Water for donating the prizes and look Alfriston, East Sussex, pupils at a local school forward to seeing the drawings displayed around designed posters to show residents how to stay the village. safe near a construction site. “Our pupils loved being a part of the competition The artwork by children at Alfriston Primary was and it helped to show the potential dangers displayed on fencing around our working area. while the work is going on. “Seeing the children’s posters on the fencing will It formed part of our drive to ensure the really make the village feel part of the work.” local community understood the dangers of construction sites and why the new 600 metre long pipeline was needed.
Project Manager, Jeremy Dufour, said: “To children a construction sites can seem FACT FILE exciting but we wanted them to know how dangerous they can be. 588 PEOPLE ATTENDED DROP-IN “We asked them to design posters to show what SESSIONS AND STAKEHOLDER safety on a work site means to them and there were some excellent drawings. MEETINGS RELATING TO ENGINEERING PROJECTS “It’s important everyone takes extra care when works are going on and we wanted to build 30 awareness. ENGINEERING RELATED STAKEHOLDER AND COMMUNITY “Our work is vital to continue the supply of top EVENTS HELD quality drinking water to local people.”
Three overall winners were chosen by Lindsey Hudson, head teacher at Alfriston Primary School, with each receiving a voucher donated by the team behind the project. COMMUNITY INVOLVEMENT Ensuring the local residents play a part in all that we do SOUTHEASTWATER.CO.UK 40 PERFORMANCE, PEOPLE AND PLANET 2019/20 41 OUR COMMUNITY
FOCUS ON
SNEAK PEEK BEHIND-THE-SCENES
Opening our customer’s eyes to how we transform water from rivers, reservoirs and aquifers into top quality, drinkable tap water has been a big focus throughout the year. Whether it’s through talks to community groups, IT MADE ME REALISE HOW attending local events with our water efficiency trailer or speaking to school pupils, our staff have LITTLE I KNOW ABOUT WHAT been out and about keen to pass their expertise GOES INTO PRODUCING onto others. SOMETHING I USE EVERY Almost 250 people from local communities and colleges came to one our free water treatment SINGLE DAY tours held throughout the year at Arlington in East Sussex, Bewl in Kent and Bray Keleher in “All of our employees are immensely proud of Berkshire. the final product which is among the highest The popular visits take customers behind-the- quality tap water in the world.” scenes while also providing information on how we find and fix leaks, protect the environment Visitor quotes: and maintain the highest quality water at “I found it very interesting and I learnt the company’s state-of-the-art laboratory in information I didn’t know before. It underlines Farnborough. the work that goes into providing tap water.” Sara Best, Regional Production Manager, said: “It made me realise how little I know about “These tours offer a rare opportunity to see first- what goes into producing something I use every hand the hard work that goes into producing single day.” clean drinking water and distributing it to homes and businesses. “It certainly opened my eyes to the effort that goes into making sure we have clean water.” “We show customers the fascinating technical processes their water goes through before it reaches their taps and give them the opportunity to ask our staff any questions they have about where their water comes from. OPEN CUSTOMERS’ EYES TO WATER Behind-the-scenes tours give sneak peeks into the intricate journey drinking water goes on from source to tap SOUTHEASTWATER.CO.UK 42 PERFORMANCE, PEOPLE AND PLANET 2019/20 43 OUR COMMUNITY
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OUTCOMES
MEAN ZONAL COMPLIANCE WATER MAIN DISCOLOURATION NUMBER OF SITES AT – WATER QUALITY BURSTS CONTACTS RISK OF FLOODING The overall mean zonal compliance is a measure Our target is fewer than 2,429 bursts in 2019/20. This outcome measures the number of customers The number of company sites at risk of flooding of the water quality at customers’ taps against who contact us to report that they have discoloured is defined in our business plan based on a one both the European directive and national water and represents this number on a per 1,000 in 200 year Environment Agency forecast of standards. HOW HAVE WE PERFORMED? population basis. Our target this year is 0.58. flooding.
Our target is to have 100 per cent mean zonal We have had 2,289 water main bursts in 2019/20, When a customer contacts us we record the As part of the 2014 price review, we undertook compliance. Mean zonal compliance is measured this compares with 2,826 water main bursts in telephone call/email/letter in our systems and an in-depth analysis of all our sites which the as tests passed as a percentage of samples 2018/19. allocate a cause to it. The total number of contacts Environment Agency predicts are at risk of taken. The reporting year for this measure is The number of mains bursts was below target for that we receive is divided by our total population. flooding once every 200 years. We identified the January to December. the year, this is due to less extremes in weather work required to remove this risk of flooding. and the continual work we do to try and reduce There were 55 sites identified in this review HOW HAVE WE PERFORMED? the level of bursts. Freezing temperatures and process and the target for 2019/20 is to have HOW HAVE WE PERFORMED? associated ground movement as well as an In 2019 we have achieved 0.53 compared to 0.59 zero sites. In 2019 we achieved 99.96 per cent. Our target increase in customer demand and strain on the last year. We are pleased that the programme is always 100 per cent and we would always want network causes the majority of leaks and bursts. of work carried out during the five year period, to be at or above 99.95 per cent. This result is in There were very few periods of below freezing such as treatment works improvements and HOW HAVE WE PERFORMED? line with our outcome performance commitment temperatures during the 2019/20 winter and removing historic mineral deposits from our pipe We measure this by completing the works and as such attracts no penalty as the water is the summer of 2019 saw average temperatures network have delivered the anticipated benefits agreed and submitted as part of our business still considered good quality. and rainfall which meant less pressure on the and reduced our contacts to the target level. We plan. network. have seen a 55 per cent reduction in customer The wide range of activities we do every day to contacts from 14/15 performance. In 2019/20 we have undertaken detailed ensure our mean zonal compliance targets are We undertake a wide range of activities to assessments and works completing the planned achieved includes: minimise the number of burst mains. Activities The key actions are as follows: works for the final two sites set out in our include managing water pressure, training business plan. targeted mains renewals programme • ongoing management and review of technicians on how to operate valves to • water treatment works minimise network impact and a targeted mains • review and optimisation of all water treatment • alarms linked to our 24/7 control room. replacement policy. works to ensure that they are dosing correctly If readings are outside of the agreed levels and working as effectively as possible Part of our targeted leakage campaign has the water treatment works will close down included more leakage technicians out in the • flushing 960 miles of water main a year to • drinking water safety plan which involves a field finding and fixing smaller bursts that may remove harmless mineral deposits that can risk assessment of all sources have previously gone unnoticed. discolour the water To ensure that our customers continue to receive • improved risk assessment process for all works top quality water, we have a state-of-the-art carried out in the distribution network to laboratory in Farnborough, Hampshire. Operating minimise the risk of a mains burst and sudden 24 hours a day, 365 days a year our laboratory is pressure and flow changes in the system which able to carry out 500,000 tests on water samples can cause discolouration each year. • we will continue to improve customer awareness through our website, social media and company literature
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OUTCOMES
ABOVE GROUND ASSET PERFORMANCE HOW HAVE WE PERFORMED? The above ground asset performance All of the four components are within agreed assessment comprises of four indicators of limits and therefore overall the above ground asset health: assets are deemed as stable in line with our performance commitment in 2019/20. We have • water treatment works coliforms non- an ongoing monitoring and audit process to compliance – the number of treatment works ensure we are complying with our commitments. where the samples taken contained coliforms We review the water quality sampling data on a (a form of bacteria) monthly basis and report our assessment to • service reservoir coliforms non-compliance our board: – the number of service reservoirs where water treatment work coliforms more than five per cent of the samples taken • non-compliance exceeded the maximum concentration our maximum target is 0.08 per cent required for coliform bacteria as a percentage • in 2019/20 we have achieved 0.03 per cent of the number of service reservoirs tested for • microbiological parameters • service reservoir coliforms non-compliance • turbidity – is the cloudiness or haziness • our maximum target is 0.84 per cent caused by large numbers of particles that are • in 2019/20 we have achieved 0 per cent generally invisible to the naked eye • turbidity • enforcement incidents – incidents which • our maximum target is 11 have triggered a formal enforcement action • in 2019/20 we have achieved one against the company on above ground assets • enforcement incidents This measure is calculated on a January to • our maximum target is 0 December year basis. • in 2019/20 we have achieved 0
SCIENTIFIC SERVICES We review the water quality sampling data on a monthly basis SOUTHEASTWATER.CO.UK 46 PERFORMANCE, PEOPLE AND PLANET 2019/20 47 OUR COMMUNITY
FOCUS ON
100 YEAR PRESENCE IN ALDERSHOT
To celebrate 100 years of having a water treatment hub in Aldershot we invited Mayor of Rushmoor, Councillor Sue Carter, to the site to mark the occasion by burying a time capsule. The capsule was filled with memorabilia from over the last century and will be dug up in 100 INNOVATION CONSTANTLY years’ time by the next generation of employees. TRANSFORMS THE WATER Steve Benton, Head of Operations West, said: “It INDUSTRY. WE ARE VERY PROUD is easy to forget just how vital our Boxalls Lane TO BE ABLE TO SERVE THE LOCAL site is for the local community. COMMUNITY AND I AM SURE “The fact that this building has been operational for 100 years is a testament to the hard work THAT FUTURE GENERATIONS that has gone into ensuring Aldershot has a WILL APPRECIATE THE WORK secure supply of water. THAT HAS GONE IN OVER THE “Innovation constantly transforms the water industry. We are very proud to be able to serve LAST CENTURY the local community and I am sure that future generations will appreciate the work that has gone in over the last century.” Cllr Carter added: “I was delighted to be invited to the Boxalls Lane Depot to join the 100th anniversary celebrations. “We often take tap water for granted but it is important to remember that water is a life resource which we all need. “I’m grateful to South East Water for supplying top-quality drinking water throughout Rushmoor.”
A MOMENT IN TIME Celebrating 100 years of having a water treatment hub in Aldershot SOUTHEASTWATER.CO.UK 48 49 OUR BEHAVIOUR
OUR PEOPLE... OUR BEHAVIOUR
OUR APPROACH Striving to be a good company to work for is FACT FILE in the clear interests of any organisation, its employees and customers. Here we seek to 90% demonstrate how, through our people, our EMPLOYEES ARE PROUD TO WORK FOR culture and the activities we pursue collectively, SOUTH EAST WATER we advance towards this important objective. ZERO It all starts with a strong vision which is “to be BREACHES IN STATUTORY OBLIGATIONS the water company people want to be supplied AND LICENCE CONDITIONS by and want to work for” and is reflective of how we behave. ZERO We aim to ensure that all our 959 employees HEALTH AND SAFETY LEGISLATION are fairly treated, highly motivated and well BREACHES regarded. We aim to provide rewarding jobs 17.38% by improving skills through training and STAFF TURNOVER – 2019/20 COMPARED development. We aim to be a good neighbour and TO 19% IN 2018/19 take account of the views of our stakeholders, trying to ensure our local social and economic 25% impact is positive, developing strategies to GENDER PAY GAP (AVERAGE HOURLY WAGE) benefit all those with an interest in our business.
We are committed to observing high standards SILVER WE HOLD THE SILVER INVESTORS IN of corporate governance and ensuring we maintain high ethical standards throughout our PEOPLE AWARD business. Our code of practice sets out how we 14,734 undertake procurement in an appropriate and HOURS OF TRAINING COURSES fair manner. Only through the ethical conduct of our business can we sustain a relationship of ZERO trust with the communities in which we operate. NATIONAL SECURITY OBLIGATIONS The security of our resources and water BREACHES treatment is of the upmost importance. 82% We work closely with the Government and OF EMPLOYEES WOULD RECOMMEND US security services to ensure measures are in AS A GOOD PLACE TO WORK place to secure a safe drinking water supply to customers round the clock.
WORKING TOGETHER AS ONE All contractor repair and maintenance teams now wear our uniforms and drive our vans SOUTHEASTWATER.CO.UK 50 PERFORMANCE, PEOPLE AND PLANET 2019/20 51 OUR BEHAVIOUR
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CARING FOR OUR PEOPLE There is great support for people participating We are working in partnership with MIND to look Our Sports and Social Club is very popular due in sponsored events and for anyone who wants at how we can help employees manage their to the wide range of leisure activities that they Our people are central to us providing our to create an opportunity to exercise. We have mental health and now have 30 mental health organise, including trips to New York, Bruges customers with an excellent service and it is two running groups which go out at lunchtimes first aiders in the business who wear yellow Christmas markets, West End shows, discounted therefore imperative that they are at the heart or outside of work. More than 100 employees lanyards to help people identify them easily. cinema tickets, concerts and England football of our vision: to be the water company people have become involved with all abilities of runners Our MHFA’s are there for colleagues in times of matches. want to be supplied by and want to work for. and walkers taking part. There are lots of other crisis and can help to support them to find the We are proud to have been the first water We actively embrace many initiatives aimed at opportunities to participate in exercise and appropriate professional help they need. company to become accredited as a Living creating a positive bond between the company sports within the company including lunchtime In October we held our first dedicated mental Wage employer back in 2014. We continue to and employees and we regularly measure levels exercise class, five-a-side football, baseball, health conference for around 200 managers ensure everyone, regardless of whether they are of satisfaction via surveys, taking action where cricket and lunchtime games. and partners with special cinema screenings permanent employees or third-party contractors we find any shortfalls in the areas of training, Our “it’s ok not to be ok” campaign during held across our supply area to pass information and suppliers; receive a minimum hourly Real development, recognition and reward. We do our October, encouraged everyone to be open about business wide. You can read more about that on Living wage of £9.30, significantly higher than best to make our people feel involved and valued mental wellbeing. Mental health first aiders page 59. the national minimum wage of £8.72 (25 such that they are passionate about their job and (MHFA’s) have been established across the and over). care about providing excellent customer service. business to support this. Employees also have access to help with stress management which helps them to identify which In the field of health and wellbeing our Thrive We have also developed a mental health strategy areas of their life are causing them the most 365! strategy’s aim is to emphasise the message RECOGNISING OUR PEOPLE to remove the fear of stigma many people feel stress, both within and outside of work. that health and safety is common to everyone when discussing mental health and create parity We try to ensure all our colleagues receive and is the responsibility of each individual and between mental and physical health. We use a Through such examples we hope to demonstrate thanks and recognition for their hard work. One each team. mental health spectrum ranging from unwell that the health and wellbeing of our people is simple way for everyone to show their gratitude truly embraced and we also actively encourage is through giving a “High Five” via our intranet. During the past year, wellbeing champions from through to thriving – an individual’s mental groups set up by employees themselves who During the year more than 1,000 High Fives were across the business have both taken part in and health is fluid and could be anywhere on this run a wide variety of health and wellbeing events shared with colleagues across the business. promoted healthy workplace events. During spectrum on any particular day. Our aim is to and activities. To bring this to life further a monthly award May 2019, employees were encouraged to log provide a positive and supportive environment is presented for the person who has received their steps with the top five steppers going into for all employees wherever they find themselves We have a number of initiatives that employees recognition for particular achievements. a draw to win a voucher. To encourage people to on the spectrum. We will promote positive can benefit from including health insurance get out and about we also asked people to send mental health, provide training and access to which covers a contribution towards dental Plans are underway for STARS, our biennial in photographs of the nature they had seen on information for all and through our mental costs, eye tests, glasses, alternative therapies awards which will be held in 2020/21, to their walks in a separate competition. health first aiders signpost to appropriate and much more. We are part of an Employee celebrate the end of the current five year support for those who are unwell or struggling Assistance Programme which provides 24 hour programme and herald the start of a new plan. with their mental health. counselling service, financial and legal advice. A team is now in place with support from across Activities including Time to Talk Day have helped There is an option to buy or sell annual leave, the business to help plan the event once the keep this message going. along with ride to work and childcare voucher Covid-19 restrictions are lifted. schemes. In November, Managing Director Paul Butler hosted our annual Long Service and Recognition Awards with 35 colleagues receiving certificates for achieving educational and vocational qualifications and a further three, including Paul himself, recognised for serving a total of 75 years between them.
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CARING FOR OUR COMMUNITY We will be monitoring the male/female split Our Women at Work group exists as a discussion Managers are encouraged to identify the issues of candidates and where there is less than a forum for women employees to share experience and provide support to those employees whose We are very proud of the fundraising efforts 25 per cent split of women at shortlisting, the and knowledge. Several of the group’s members performance sees them fall into the lowest of our colleagues. We have a monthly charity advert will be reviewed and the closing date may are senior managers whose experience is performing category in a bid to move them up day where employees can “dress down”, raffles be extended to give further opportunity for invaluable. the table in the next review period. and cake sales take place. In addition, we are applications. a keen supporter of WaterAid and a number We are the first water company to partner Our Perfecting Performance programme supports of employees have taken part each year in All roles at Grade D and above will require there with the Women’s Utility Network (WUN), an new managers by focussing on self-awareness challenges. Internal fundraising days raised to be an interview panel consisting of both men organisation dedicated to encouraging greater and people skills. The training was expanded in £12,100 in 2019/20. and women interviewers. industry diversity and better career progression 2018 with more external courses relevant to an for women in the utilities sector. The aim of WUN individual’s role and this continued into 2019. We Responding to feedback from employee survey We are a Disability Confident Committed is to give women the skills and confidence they have two further cohorts planned for 2020. focus groups, we’ve continued our initiative of Employer. We signed up to this government need to build lasting, fulfilling careers providing giving people the opportunity to get involved in initiative designed to help companies recruit and practical support and inspiration. Perfecting Performance empowers managers to volunteering opportunities. retain disabled people and people with health develop their teams so they have the confidence conditions for their skills and talent. Where a We have a staff council which is a partnership to deal effectively with day-to-day issues. Not Whether coppicing with Kent Wildlife Trust in disabled candidate meets the minimum criteria between the company, employee only has the course supported new managers, the woodland that boarders the Broad Oak Valley for a role they should automatically have an representatives and the recognised Trade but also their teams mirror their behaviours and near Canterbury or dormouse monitoring at interview. Union (UNISON) to discuss matters affecting the benefits ricochet through the company. Arlington – we are hosting regular activities in employees and the company. This group has which employees can participate. We are taking care to ensure that our worked successfully for a number of years and We have an ongoing Learning at Work recruitment advertising is accessible to all. is always well informed of any changes that are programme which includes video training which Furthermore we are talking to local schools and taking place. our teams can take in at a time convenient to DEVELOPING OUR PEOPLE other educational establishment to promote them. This enables individuals to pick the course Our talent and organisational development STEM (Science, Technical, Engineering and Our organisational development team is kept where they believe they could benefit from more team has helped deliver 14,734 hours of training Maths) careers within South East Water, with a very busy as we are keen to help improve the knowledge. We recently updated our e-learning to colleagues. particular emphasis on women. All our roles are skills of our people through a number of different portal Pure Know h2ow and continuously develop advertised internally and we encourage women programmes. We firmly believe that engaged new content to support employees with their The company has a number of initiatives to employees to consider working within technical employees go the extra mile to deliver a great personal development at work. reduce the gender pay gap at South East Water areas of the business. service. and to increase diversity. We know that apprenticeships are a valuable way We are developing our in-house coaching and How we keep our employees engaged is by of developing new talent by working alongside To increase women candidates within management mentoring service to develop colleagues who embracing the Investors in People ethos of our more experienced water workers who enjoy roles, all vacancies at Grade D and above are want to advance by arranging discussions with continuous improvement and measuring passing on their knowledge. We have an ongoing advertised at 30 – 37 hours per week unless there senior managers or specialists. While this service performance against our corporate objectives programme of recruiting apprentices for a two is a clear business reason why this is not possible. is not specifically aimed at women, we believe through our iReview appraisal system. year apprenticeship in our operations team. that it is a measure that will assist women's progression.
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During the first six months of the programme, LISTENING TO OUR PEOPLE ENDORSEMENTS FOR OUR WORK operations apprentices gain an overview of the Our intranet, named Gurgle, was designed to Congratulations also go to all the teams and whole company which sees them work in areas introduce a social culture within the business, projects that received industry recognition such as water distribution, production process, improving morale and engagement. As our teams through a number of awards and shortlisting electrical and mechanical maintenance and are spread across a number of locations, it was during the year. leak control, before specialising in one area of ATLAS KEY STATISTICS important for us to make the company feel water supply. integrated and for information to be accessible 4,862 Our Environment team won two Green Apple awards at the Houses of Parliament for their In addition, we often recruit apprentices in other anytime, anywhere, by anyone. UNIQUE VIEWS Pesticide Amnesty and Woodgarston Markets areas of the business including our IT, customer High fives have become a popular method of 675 project. The awards recognise and promote services and human resources departments. You awarding recognition to colleagues and blogs are COMMENTS ON IDEAS environmental excellence, and as winners, can read more about our apprenticeships on very popular as a method of sharing information we automatically become a Green World page 61. or praising achievements. 448 Ambassador and will be put forward to represent Within the company there are lots of members ACTIVE ACCOUNTS the UK in the Green World Awards. We have established Pipe Up! a forum for staff of the team who transfer from one department to help resolve specific problems across the 295 The Environment team was also highly to another as they would like to progress or business and a way for employees to get involved IDEAS RAISED commended in the 2019/20 Rushlight Awards undertake a different type of work. and share a wealth of experience. while South East Water Scientific Services won
These transfers are encouraged as we know 130 SME News Water Utility Company of the Year. Last year we launched Atlas, our new innovation that enjoying your job is not only good for our SUCCESSFUL IDEAS UNDERGOING platform designed to capture the great ideas Awards shortlisted for: customers but also fits with our vision to be a DEVELOPMENT and innovative works completed by our people. company that people want to work for. Atlas is the technological element of our ever- 11 We have been shortlisted for four awards at WWT Water Industry Awards 2020. The Our last employee survey highlighted that only growing innovation programme coupled with the PROJECTS COMPLETE ceremony is due to take place in July 2020: 68 per cent of our people are aware of the human-centred element built around Champions and Changemakers. These uniquely trained and training resources and learning opportunities • Water Company of the Year available. As this was one of our lower scores it skilled individuals support innovation projects is an area that we continue focusing on. undertaken by teams across the business, • Data Project of the Year helping to break down barriers and allow – Smart Water Network GURGLE KEY innovation resource to flourish. We recognise • Water Innovation Project of the Year innovation is for everyone and aim to empower STATISTICS 2019/20 – Smart Water Network each and every colleague to be involved and join us on this new journey. OVERVIEW • Skills and workforce innovation of the year – Developing a business wide innovation 589,691 61,749 champion community VISITS VISITS TO BLOGS 1,313 1,229 NEW PAGES LIKES 66 1,183 FORUM POSTS HIGH FIVES 918 BLOGS PUBLISHED
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WE ARE COMPLIANT WITH WE ARE COMPLIANT WITH WE ARE COMPLIANT WITH OTHER HEALTH AND SAFETY NATIONAL SECURITY STATUTORY OBLIGATIONS AND REGULATIONS OBLIGATIONS LICENCE CONDITIONS Our outcome is to be compliant with health and Our outcome is to be compliant with the number Our network is monitored 24 hours a day by a Our outcome is that we will have no breaches safety regulations and have zero breaches. of compliance breaches of the security and Security Operations Centre (SOC) which alerts us of other statutory obligations and licence emergency measures directive. Our target is to any anomalous behaviour in and out of hours. conditions. Breaches are defined as the number zero breaches. of prosecutions and enforcement actions during HOW HAVE WE PERFORMED? We have a cyber incident response plan which the year. Our target is zero breaches. is tested regularly. We continue to work closely We have had zero breaches during 2019/20. HOW HAVE WE PERFORMED? with Defra, DWI and the National Cyber Security Our health, safety and wellbeing strategy, Centre to ensure that emerging threats are HOW HAVE WE PERFORMED? In this year we have had zero compliance breaches understood and mitigating actions are in place. Thrive 365!, was developed in consultation with of the security and emergency measures We have had no breaches of statutory management and safety representatives in order South East Water has Cyber Essentials Plus directive. The directive specifies a level of certification under the UK government-backed obligations and licence conditions in 2019/20. to deliver a workplace that fulfilled our vision security required at each type of site. We are on of being the water company people want to be scheme to assess organisations’ target to deliver all work required on time and to security controls. supplied by and want to work for. The strategy budget. We are required to produce a statement focusses on two strands, safe people and safe of compliance stating all work committed to and working, and is about more than just preventing a sample is audited which confirmed that we have accidents; it is about enhancing the overall achieved our agreed works. wellbeing of our people and being a workplace where people can thrive. Defra reviewed our activities and commended us for having a comprehensive process which is This year there has been a focus on mental already functional. health and in November we held a company-wide management conference which served as the In addition to the Defra audit we were audited launch pad for the new mental health strategy. independently by Jacob’s Auditors and achieved Expert speakers included the charity Mind and an A1 rating. the Health and Safety Executive with a keynote speech by Clarke and Carrie Carlisle. Supporting Our cyber controls have helped us successfully events were held at cinemas throughout the evade the recent ransomware or phishing region to ensure that all employees could engage attacks that have plagued other companies. with the strategy. However as cyber threats continued to increase in volume and complexity, we invested in Executive and Senior Management Team site advanced cyber defence and data protection tours have been undertaken throughout the tools, hardware and employee training and year. These tours took in a variety of workplaces awareness schemes to protect our systems and within South East Water and provided members our customers’ data from attack. of the senior management team with an opportunity to engage directly with the teams at the coal face on the health and safety issues most important to them.
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PUTTING MENTAL HEALTH CENTRE STAGE
Mental health has been central to our Health and Safety strategies for some time, but this year has seen greater emphasis on giving it parity with physical health, with the launch of our new Mental Health Strategy. To make sure mental health and wellbeing is embedded fully in our culture, a launch of the new policies was held for all managers before it was rolled out with a series of smaller – but equally impactful – events for all employees and key partners. Cinema theatres across our supply area were hired for morning sessions where the audience could watch on the big screen the recorded keynote speakers from the earlier managers’ THE LAUNCH EVENTS HAVE BEEN launch. A VERY POWERFUL WAY TO SHOW The aim was to show our commitment to HOW MUCH SOUTH EAST WATER opening up the conversation about mental health and to be progressive in our policy- IS PUTTING OUR PEOPLE AT THE making by making mental good health equal to VERY HEART OF OUR BUSINESS. physical good health. THERE’S STILL MORE WORK Head of Health, Safety and Quality, Chris Lunn, TO DO, BUT WE ARE ON THE said: “This is an area we have been working on for a while now and I am very proud we are at the RIGHT PATH AND ARE ALREADY forefront of this important health issue. SEEING THE RESULTS FROM OUR “We have trained mental health first aiders at all CAMPAIGNS our sites and we are doing a lot of promotion of our Employee Assistance Programme in which we can all access confidential counselling and advice whenever we need it. “The launch events have been a very powerful way to show how much South East Water is putting our people at the very heart of our business. There’s still more work to do, but we are on the right path and are already seeing the results from our campaigns.”
COMMITTED TO SUPPORTING OUR PEOPLE Providing mental health support and assistance to all those who need it SOUTHEASTWATER.CO.UK 60 PERFORMANCE, PEOPLE AND PLANET 2019/20 61 OUR BEHAVIOUR
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WATER WORKERS OF THE FUTURE
We’re supporting people to earn while they learn “Everyone needs water, and it’s always something through our popular apprenticeship programme. that’s going to be around. I think the water Over the last decade, we’ve welcomed more industry is a great area to work in and I love than 60 apprentices to kick-start their career knowing that I’m part of a team that helps by gaining a recognised qualification alongside supply people with one of life’s most precious real-life industry experience. More than half have resources.” gained a full-time role with us after completing LEAH’S TOP FIVE REASONS TO CHOOSE their apprenticeship. AN APPRENTICESHIP: Although we have apprentices in a wide range of office and field-based departments, we recently #1 ramped up our Operations apprenticeship EARN WHILE YOU LEARN AND AVOID programme to avoid a skills gap when experienced UNIVERSITY DEBT colleagues retire in the next few years. #2 Leakage Apprentice Leah Thomas was looking APPRENTICESHIPS ARE FOR EVERYONE – for a new role after nine years working for the NOT JUST SCHOOL LEAVERS. THEY CAN police, and explains: “I’ve always liked taking things apart and enjoyed plumbing, so I thought HELP YOU TAKE THE FIRST STEP ON A NEW this would be a perfect chance for me to turn my CAREER PATH hobbies into a new career. #3 “My apprenticeship is spread over two years. GAIN EXPERIENCE FROM COLLEAGUES Most of that time will be spent shadowing AND GET HELP AND SUPPORT TO GROW experienced leakage technicians and learning the tricks of the trade. I also get to spend a few YOUR SKILLS days a month studying at a local college. I love #4 the fact I get to earn while I learn and get stuck YOU CAN WORK TOWARDS NATIONALLY into the role right from the start. RECOGNISED QUALIFICATIONS – GREAT “In five years, I’d love to be a fully qualified FOR YOUR CV member of the Leakage Team working my way up the career ladder. I think it’s important to #5 keep increasing my knowledge and learning MEET NEW CONTACTS, MAKE FRIENDS FOR new skills, and I can’t wait to see where this LIFE AND BECOME PART OF A GREAT TEAM opportunity will take me. LEAKAGE APPRENTICE Leah a new member of our Leakage Team SOUTHEASTWATER.CO.UK 62 PERFORMANCE, PEOPLE AND PLANET 2019/20 63 OUR BEHAVIOUR
FOCUS ON
MAKING OUR NETWORK SMARTER
Technology and data is set to transform how we “During the trial the analytics system reduce leaks on our network after a year-long consolidated more than 25 million data points pilot study. from various meters, loggers and sensors The Smart Network Trial focused on 2,000 deployed across the network, transmitted by properties in north Kent, using the latest sensor three different communication networks. This technology and analytics as well as utilising gave us insight into how the clustering of events NBIoT (Narrow Band Internet of Things), fixed on the network could be better interpreted to radio and traditional cellular networks. find and fix leaks quicker, as well as identifying customer side leaks much quicker.” Its aim was to find out if the combined forces of nine specialist companies would create a smarter “This was in addition to integrating with other network and deliver leak reduction together business critical systems to deliver insight and with wider customer benefits. demonstrate potential for further opportunities in the areas of machine learning.” The results are currently being analysed but early indications are the project could help the During the trial we hosted a delegation from company reach its ambitious leak reduction Tokyo Water, who were keen to learn more about target. The project was the first time digital how working smarter can improve networks water meters, sensors and loggers have brought across the globe. together data into one central area for advanced Jim MacIntyre added: “We were delighted to analysis, exploring artificial intelligence welcome industry colleagues from Japan and techniques. share some insight. It involved switching existing water meters – “The trial has given us hands-on experience in many put in as part of our 10-year Customer deploying and managing a smart water network Metering Programme – to digital meters, and and the insight from the trial has put the company adding loggers and sensors on the underground in a strong position to evaluate a full range of network which transmit data in near real time. options to deliver more benefits to our customers Head of Leakage Operations, Jim MacIntyre, said: over the next five years and into the future.” “This was a pioneering and innovative trial and The trial involved partnership working with ZTec; we are very pleased with the results. Xylem; Vodafone UK; Sensus, a Xylem brand; Syrinix; Visenti, a Xylem brand; Gutermann; Honeywell; Diehl, and ATi.
INNOVATING TO WORK SMARTER Using state-of-the-art technology to transform how we operate SOUTHEASTWATER.CO.UK 64 PERFORMANCE, PEOPLE AND PLANET 2019/20 65 OUR BEHAVIOUR
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KEEPING TAPS FLOWING DURING A GLOBAL PANDEMIC
As we welcomed 2020 and made plans for the For the few staff still working out in the year, very few would have predicted the way the community, in our offices, water treatment country, and the world, would fundamentally works or our water testing laboratory, the change just two months later. way we worked was aligned to Government On 16 March, with the Covid-19 pandemic guidelines as a minimum. spreading and social distancing becoming a While the call centre remained open the vast necessity, we started putting pre-planned majority of employees were given laptops and measures in place which profoundly changed software to enable them to work from home, how the business operates. directed non-urgent queries to our website, From our call centre to control room, we swiftly social media channels and MyAccount online organised for employees to be home working portal to increase self-service. wherever possible using video conferencing, To ensure our customers were supported during email, the intranet and social media channels this uncertain time we put a range of measures to keep everyone up-to-date with the latest in place to help those struggling to pay their business information. For those in the field, we bills as well as writing to all those on our Priority ensured they could continue working safely Services Register to remind them of the help we while following social distancing rules. provide while promoting it heavily to urge more This head start ensured that when Prime to sign up. Minister, Boris Johnson, announced strict new David Hinton, CEO Designate said: “We worked social distancing measures were to be enforced extremely hard to maintain the high quality from Tuesday 24 March we were on the front water supply service our customers expect, while foot. making drastic changes to the way we work. Company staff were officially designated by “It was a mammoth operation behind-the-scenes the Government as ‘key workers’ and as a result to change working practices so quickly and it’s customers continued to see us out on local testament to the agility of our workforce and our streets, 24 hours a day, seven days a week, contractors that it went extremely smoothly.” carrying out repairs to burst water pipes, finding At the time of writing lockdown was still enforced and fixing leaks, critical maintenance and the and plans were being put in place to understand laying of new pipes while observing the social how the business would operate as restrictions distancing rules. are lifted. KEY WORKER PRIDE Our people play an integral role in keeping the country going at this time SOUTHEASTWATER.CO.UK 66 PERFORMANCE, PEOPLE AND PLANET 2019/20 67 OUR PLANET
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OUR APPROACH Underpinning our “every action counts” FACT FILE commitment – which makes sure our operational performance is safe, effective 85.3% and efficient – is an environmentally responsible OF COMPANY SITES OF SPECIAL SCIENTIFIC approach to our work. INTEREST ARE IN EITHER FAVOURABLE OR That doesn’t just mean complying with RECOVERING CONDITION COMPARED TO A environmental laws and regulations; our TARGET OF 75 PER CENT BY 2025 employees are actively encouraged to become
guardians of the environment. We do this in 100% OF ABSTRACTIONS EEL REGULATIONS a number of ways, through training, raising environmental awareness both within the COMPLIANT, WE ARE ONE OF THE FIRST business and outside it and by ensuring that COMPANIES TO BE COMPLIANT our in-house environmental team supports ZERO all aspects of the work that our employees DEFICIT IN OUR WATER RESOURCE ZONES undertake.
There are three things that drive much of 86.4 our environmental ethos – the very nature MILLION LITRES OF WATER LEAKAGE PER of our supply area in terms of environmental DAY COMPARED TO OUR TARGET OF 88.1 designations; the scarcity of naturally available water that can be found within it, and our customers and communities’ support for us protecting the environment as a priority.
Ensuring our operational performance is safe, effective and efficient means an environmentally responsible approach to our work.
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ENVIRONMENTAL DESIGNATIONS SCARCITY OF LEAKAGE LEVEL NATURALLY-AVAILABLE WATER Leakage is the loss of water from the supply Our supply area is unusually rich in biological Operating in such a protected and complex The water at customers’ taps is originally network. Our target in 2019/20 was 88.1 million diversity and protected landscapes: environment is not without its challenges sourced from rivers and underground aquifers. litres per day (Ml/d). Total leakage figures include but we have robust policies, procedures and the loss of water between our water treatment programmes of work in place to deliver upon our Abstracting this water is an activity regulated • one world heritage site works and the customers’ boundary, and the “every action counts” commitment. by the Environment Agency through special (Canterbury Cathedral) loss of water from customers’ pipes and in licences. We work hard to make sure that our This includes: the homes. Leakage is measured in megalitres • 44 per cent of our supply abstractions are not only within licence, but are (1,000,000 litres) per day (Ml/d). area lies within a landscape sustainable too. designation (national average 24 per cent) Making sure there is enough water for our planet HOW HAVE WE PERFORMED? and people means taking steps to protect what Our leakage in 2019/20 was 86.4 Ml/d, which is making sure we fulfil our obligations • 196 sites of special scientific • we have now – we do this through our national better than in 2018/19 (86.9 Ml/d). interest (SSSI) under environmental legislation, including environment programme which you can read the National Environment and Rural more about on page 72. With a commitment to reduce leaks between • 17 special areas of conservation (SAC) Communities Act 2006 (NERC) and the 2020 and 2025 by 15 per cent we have • two marine special areas of conservation Wildlife and Countryside Act 1981 In dry weather, the demand for water from our undertaken a specialist recruitment drive across customers increases significantly and so does our the leakage operations team to ensure we have nine special protection areas (SPA) • having management plans in place for all • energy consumption – the two are intrinsically the necessary roles in place to meet that target. company-owned SSSIs so that at least 85.3 per four marine special protection areas linked as water is heavy and takes a lot of energy This optimisation focused approach has seen • cent of them are in favourable or recovering to move. the introduction of leakage analysts who will • six Ramsar sites as classified under the condition by 2020 scrutinise big data from our systems and field convention on wetlands of international • carefully planning, designing and delivering our It makes good environmental sense to reduce technology to further improve how we target importance investment schemes to try and avoid and/or both, which is why we are committed to working leak repairs and ultimately reduce leak run time. with our customers to promote simple water • 11 national nature reserves (NNR) mitigate the impact of our work The team successfully completed the smart savings tips and devices to reduce their demand water network trial which provided invaluable • four marine conservation zones • closely managing our contractors, including for water and, therefore, our energy use too. environmental training and compliance audits insights to our leak detection strategy. The pilot • over 500 scheduled monuments Helping customers reduce their water embraced technology and was the first time, in the water industry, digital water meters, sensors • 111 registered parks consumption remains a crucial cornerstone and loggers brought together data into one and gardens of our customer metering programme – it central area for advanced analysis and exploring doesn’t just have the potential to save water, artificial intelligence techniques. Repairs on but money off customers’ power and water bills customer side supply pipes continued alongside a too. In 2018/19 we achieved our aim of having trial to use satellite imagery to pin point leaks on The south east is also the most wooded area in 90 per cent of our household customers on a England, with large swathes of it designated as up to 16 per cent of our network in any one year. water meter, this has seen on average a 16 to We also produced a promotional video showcasing ancient woodland. This, and the warmer climate 18 per cent reduction in water used for those we experience, enables many rare and protected the work of the leakage team aimed at helping properties moved onto the new charges. While a customers understand the work they do. habitats and species to flourish, resulting in a good result we are now progressing our ongoing complex ecological mosaic. water efficiency strategy to help customers This ongoing investment in leak detection and save water at home and work – we aim to reduce repair has enabled us to beat our leakage target customer demand by a further seven per cent for the 18th year in a row, and allowed us to between 2020 and 2025. embrace novel techniques which puts us in a good position as we start the next five year period.
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MEETING THE WATER DEFICIT supported a reduction in Soil Moisture Deficits, a WaterSafe plumber in an emergency, this NUMBER OF BREACHES OF while groundwater and reservoirs recovered to led to 2,208 stop tap labels being given out to ABSTRACTION LICENCES, We are required to maintain the security of our maintain healthy positions for the start of the customers this year. water supplies and ensure that we have sufficient 2020/21 reporting year. DISCHARGE CONSENTS AND water available to meet our customers’ needs We collaborated with education organisation, ENVIRONMENTAL PERMITS both now and in the future. Our target is to have Our Customer Metering Programme concluded So Sussex, to bring our giant water network zero deficit. in March 2020 with 90 per cent of homes now game to the Elderflower Fields Festival. We spoke Our desired outcome is to be compliant with metered across the South East Water supply area. to over 400 people at the family friendly event in environmental regulations in relation to the The security of supply index assesses whether the heart of the Ashdown Forest. number of breaches of abstraction licenses, we have enough supply to meet demand. If we We have seen higher levels of demand towards discharge consents and environmental permits. have sufficient supply to meet demand then the the end of the financial year in the months So Sussex also delivered an enhanced outdoor Our target is to have zero breaches. index score is zero. of February and March with people working learning programme for disadvantaged young from home due to Covid-19. This upturn in people attending youth clubs in the Newhaven This outcome is measured by the results from demand has contributed to a slightly higher per area and held the John Muir environmental Environment Agency routine site visits and HOW HAVE WE PERFORMED? capita consumption compared to our WRMP19 award with four schools in Sussex. The award audits of discharges consents as well as annual and daily abstraction data which we submit. In 2019/20 we had a zero deficit. forecasted dry year demand forecast. encourages interest in nature and the local environment and has a large focus on water and During 2019/20 we received an average of 126 We received direction from the Secretary of water saving. per cent of long term average rainfall through State (Defra) to publish our revised draft drought HOW HAVE WE PERFORMED? the 12 months reporting period, from April to plan as a final plan. This was published at the end This was on top of our own popular “World of We have developed a traffic light assessment for March. Across the supply area, an average of of May 2019. Water” schools programme which saw a further discharge consents, daily and annual abstraction 148 per cent of long term average rainfall was 2,635 pupils have a school talk during the year, In August 2019, we published our WRMP19 (Water licences as follows: received during the winter months and 98 per while we attended 58 community events across Resources Management Plan 2019). During the cent of long term average rainfall during the the region, engaging with almost 2,000 people. Discharge consents: We had four discharge process of developing and revising this plan summer months. consent breaches in 2019/20 which gives a green we met and communicated regularly with the We continue to support customers as they work classification in the traffic light assessment. The year started off relatively dry, with only Environment Agency, Natural England and with to save water and as supporters of Waterwise 43 per cent of long term average rainfall during Ofwat. We also continued to engage with our we are working closely with this environmental Annual abstraction licences: We had one April 2019. However from June the weather was Environmental Scrutiny Group (ESG; previously organisation to encourage water saving annual breach this year, resulting in an amber generally wetter than long term average. Only Environmental Focus Group) who continue to nationally and develop a culture of water saving classification in the traffic light assessment. provide good levels of challenge and feedback behaviour in the UK. August saw rainfall less than 100 per cent of Daily abstraction licences: We had 16 daily long term average, with 85 per cent of long term to us on various aspects of our WRMP19, and Our engineering teams are on track to deliver the abstraction breaches during 2019/20 which average falling during the month. As the summer who will be working with us throughout the new water schemes that we committed to in our would be classified as amber in the traffic progressed, the rainfall continued, with an implementation phase of WRMP19. water resources management plan. light assessment. average of 121 per cent of LTA rainfall between The winter of 2019/20 was a mild and wet one, June and September. For each of these breaches an investigation but we still encouraged customers to “wrap up In March 2020 we successfully secured the existing borehole abstraction licence and was carried out and corrective measures The late autumn and early winter months for winter” with a communication campaign to a section of land at the former Aylesford implemented to improve and maintain control continued the above average rainfall trend, with promote how to look after your home plumbing Newsprint site in Kent. We are now in a position of the amount of water being abstracted October, November and December all returning to avoid bursts from freezing pipes. The to progress with plans to develop and build a new for drinking water supplies – an approach figures above 150 per cent of long term campaign led to 4,314 page views of our website multimillion pound water treatment works which which is discussed and agreed with the average rainfall. The remainder of the winter advice and 2,750 pipe lagging and 2,584 outside will produce 18.2 million litres of water a day and Environment Agency. continued with the wetter weather, where tap guard kits being sent to customers. We also secure future water supplies to Maidstone and February stands out with 260 per cent of long worked with WaterSafe to help customers know the wider area. term average rainfall. This sustained wet period where to find their stop taps and how to contact
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NUMBER OF BREACHES OF WATER INDUSTRY NATIONAL HOW WE PERFORMED Groundwater catchment management investigations – all eight statutory ABSTRACTION LICENCES, DISCHARGE ENVIRONMENT PROGRAMME (WINEP) In 2019/20 we commenced with the delivery of investigations submitted to our regulators with CONSENTS AND ENVIRONMENTAL The water industry national environment the final year of this five year of our programme. all eight completed in 2018, key pilot work has PERMITS continued programme is a statutory programme developed Excellent progress was made in the year, the continued for a second year at Woodgarston to by the Environment Agency and Natural England. highlights include: We undertake continuous monitoring of our test catchment measures to reduce nitrate in sites and policies to ensure we are following The programme is driven, in the main, by various Eel regulations – all of our surface water the groundwater. Other key highlights for the good industry practice. We also have quarterly environmental legislation. abstractions became Eel Regulation compliant year have included recognition for our pesticide meetings with the Environment Agency to We concluded the final year of this five year within the reporting year. amnesty and cover crop trial work by gaining ensure that we have continual dialogue and programme and over the five years 2015 to 2020 a gold and bronze green apple award. The can discuss any potential concerns. we have delivered: Pilot biodiversity plans – all 10 plans have now removal of 1,056 kg of harmful chemicals from been implemented, our on-site conservation and our catchments as part of a catchment wide As part of our event investigation process we • 10 MCERTS (Environment Agency’s monitoring monitoring work resulting in the enhancement pesticide amnesty project. undertake an environmental impact assessment. certification scheme), with 3 of these awaiting and protection of many priority habitats the results of which show the breaches during final sign off for certification (certification including 970 hectares (ha) of lowland mixed Restoring sustainable abstraction the year would have no damaging impact on the has been delayed as a result of the Covid-19 woodland, 246 ha of chalk grassland, 148 ha of investigations/options appraisals – nine out of environment, this is due to the low volumes of pandemic) fresh water habitats, 13 ha of lowland heath 10 studies have been completed in the reporting water taken above the licences. year. The remaining scheme is one which we are • six eel regulation compliant abstraction and 7.65 ha of wet woodland. We have managed screens by March 2020 (on track for delivery) invasive non-native species on 10.9 ha of our delivering in partnership with two other water companies, this project, on the Little Stour will TRAFFIC LIGHT ASSESSMENT TABLE estate and undertaken 80 invertebrate, three • one eel regulation compliant eel pass bat, 28 reptile and seven botanical surveys to complete in 2020/21. by March 2020 TYPE OF LICENCE GREEN AMBER RED ascertain the biological value of our conservation work on these sites. Discharge less than more than • 72 biodiversity reports by March 2017 (completed March 2017) consents 6 6-8 8 All six of our surface water catchment Annual • 10 pilot biodiversity plans by March 2018 management pilot projects have been delivered. licences 0 1 2+ (all complete and now delivering these plans Particular highlights during the year being Daily licences less than more than to improve the biodiversity of our sites) the removal of 58,200 kg of metaldehyde slug 12 12-25 25 pellets from our catchments, investing £93,000 • six surface water catchment investigations by March 2017 (completed March 2017) in farm landholdings to improve raw water quality, securing investment and leading a Defra • six surface water catchment pilot projects Environmental Land Management Scheme by March 2020 (completed March 2020) (ELMS) trial on the Pevensey Levels as well as • eight statutory groundwater catchment leading eight landowner education events. management investigations by March 2020 (all completed) • 10 restoring sustainable abstraction investigations and options appraisals (all completed with the exception of a joint water company project on the Little Stour. This project will continue into 2020/21)
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FOCUS ON
IMPROVING NATURAL HABITATS As a major landowner, and guardian of some FACT FILE of the region’s most precious environmental resources, we have a duty to protect and 384 enhance the south east’s natural habitats. BAT, BOTANICAL, BUTTERFLY, REPTILE AND This work has resulted in the successful AMPHIBIAN SURVEYS UNDERTAKEN conclusion of a ground-breaking trial to increase biodiversity at a number of our sites as part 10.9 of the Water Industry National Environment HECTARES CONTAINING INVASIVE Programme (WINEP). NON-NATIVE SPECIES (INNS) ACTIVELY Following detailed site surveys, 10 locations MANAGED AND CONTROLLED within the South Downs National Park were selected to take part in the five year trial. WORKING TO PROTECT AND ENHANCE PRIORITY HABITATS INCLUDING: Initiatives ranged from restoring chalk grassland, changing grass cutting regimes and tree removal 970 to building barn owl boxes, bat roosts and bird HECTARES LOWLAND MIXED DECIDUOUS feeding areas. WOODLAND Each site has its own individual characteristics and needs and therefore was individually 246 managed. HECTARES OF LOWLAND CALCAREOUS At Deep Dean we successfully reintroduced the GRASSLAND Wart-biter bush cricket 30 years after it became extinct there because of over-developed 148 scrubland. HECTARES OF FRESHWATER PONDS, RIVERS AND STANDING WATERS Working in partnership with Buglife, Natural England and the Zoological Society, the scrub 13 was cleared and high quality chalk grassland HECTARES OF LOWLAND HEATHLAND restored enabling the Wart-biter to be reintroduced. 7.65 Since their reintroduction the Wart-biters have HECTARES OF WET WOODLAND been thriving. PROTECTING AND ENHANCING NATURAL HABITATS We are one of the south east’s largest landowners and are working hard to preserve it for future generations SOUTHEASTWATER.CO.UK 76 PERFORMANCE, PEOPLE AND PLANET 2019/20 77 OUR PLANET
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I AM EXTREMELY OPTIMISTIC FOR Richard Dyer, Biodiversity lead, said:” Our supply area is unusually rich in biological diversity, THE FUTURE OF THE WILDLIFE protected landscapes and rare species and ON SOUTH EAST WATER’S LAND covers one of the most densely wooded parts DESPITE ALL THE CHALLENGES of England. THE FUTURE HOLDS IN OUR “To be able to enhance and restore the CHANGING CLIMATE company’s land back to how it would have been many years ago is an exciting challenge and we are delighted this pilot has been as successful as it has.”
At Hawkley Water Treatment Works near Dr Louise Bardsley, Senior Adviser at Natural Petersfield Heavy Horses were used to clear England, said: “South East Water had the conifers that were planted on top of ancient only dedicated comprehensive biodiversity woodland between 1950 and 1980. enhancement programme in the PR14 Water Removing areas of Douglas fir and Scot’s pine Industry National Environment Programme means sunlight can pour in enabling the saplings and has achieved fantastic results in its first of several hundred oak, beech, yew and field five years. maple trees that have been planted in their place to take hold. “Particular highlights are the identification of a new mammal record for Hampshire (alcathoe The heavy horses were used to take away the bat) and helping save a species on the brink of felled timber instead of machinery because they extinction (Wart-biter bush cricket) as well as all have the least impact on the habitat. the habitat enhancements and recreations. Recent surveys show an increase in flora at the site with the reintroduction of enchanter’s “It isn’t just the outcomes, it is the entire culture nightshade, opposite-leaved golden saxifrage engendered in the whole organisation of truly and wood avens. striving to help wildlife thrive in everything the While biodiversity gains have been recorded at company does. all pilot locations, we are particularly proud of “I am extremely optimistic for the future of the the increase in butterfly numbers which is a key wildlife on South East Water’s land despite all indicator of well managed land. A total of 34 the challenges the future holds in our changing butterfly species were recorded during surveys climate.” at eight sites. In particular, the numbers of small heath butterfly have increased at all sites where it’s found, bucking the national trend of long- term decline.
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FOCUS ON
SUSTAINABLE ABSTRACTION
The majority of the water we abstract from the During the study period there were changes to environment comes from underground aquifers the water course which were beyond our control, and rivers. Therefore, we have a responsibility such as the building of a dam and extremely low to ensure the water taken does not result in rainfall levels between 2010 and 2012, followed adverse effects on the environment. by a period of heavy rain resulting in flooding. The Restoring Sustainable Abstraction (RSA) Despite this, we have examined how the most programme, which is part of the Water Industry sustainable abstraction regime for this site and National Environment Programme (WINEP), taken an Adaptive Management Approach to centres on maintaining or enhancing the improving the stream. environment. Many of the schemes in this This has resulted in a 45 per cent decrease in programme are linked to chalk aquifers. the amount of groundwater abstracted from There are just over 200 chalk streams in the Saddlescombe. We could not do this alone and world and most of them are in the southern is a result of both leakage management and our half of England, with a large number within our customers who have worked with us to reduce supply area. Chalk streams and rivers are of their own water use in this area. global importance and support a rich diversity of Alongside these reductions, the building of the wildlife including important fish populations such dam created a ponded area upstream which as brown trout, native crayfish and many other made Poynings Stream more resilient to dry specialist species. weather and helped maintain water flows (we It is important that our abstractions from chalk call this adaptive management as it creates aquifers are sustainable to ensure we protect resilience within the natural system). chalk streams for future generations to enjoy. Studies have shown that changes in both the The company is licenced to take up to 2.41 demand for water and these resilience measures million litres of water a day from the chalk have contributed to a positive effect on the aquifer at Saddlescombe Water Treatment hydrology and ecology of the whole Poynings Works in East Sussex. valley. While groundwater abstraction at As part of WINEP, we have been tasked with Saddlescombe WTW is having a local effect on raising the ecological quality of Poynings Stream groundwater levels it is being operated at a with studies and mitigation work taking place sustainable level. over a 10 year timeframe to understand how MAINTAINING AND best to operate this source. ENHANCING THE ENVIRONMENT Making sure the water we abstract does not negatively impact on chalk streams and aquifers SOUTHEASTWATER.CO.UK 80 PERFORMANCE, PEOPLE AND PLANET 2019/20 81 OUR PLANET
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OUTCOMES
AS A BUSINESS WE HAVE TO NUMBER OF POLLUTION will reduce our energy and carbon. We are also Two groundwater abstraction sites were agreed INCIDENTS (CATEGORY 1-2) exploring more advanced analytics surrounding under AIM for South East Water, these are STRIKE THAT DELICATE BALANCE energy, identifying sites that are inefficient Windmill Hill (East Hampshire) and Kingston BETWEEN ABSTRACTING WATER Our outcome is to be compliant with based on energy trends and would therefore (Kent). Windmill Hill abstraction being linked to TO TREAT AND PUMP TO OUR environmental regulations and our target is to benefit from a revised process or improved monitoring of flow of the River Wey and Caker MILLIONS OF CUSTOMERS, WHILE have zero pollution incidents. assets. Stream (both gauging stations are located in Alton, Hampshire) and Kingston abstraction ENSURING NO DETERIORATION Most of our carbon intensity (81 per cent) is linked to monitoring of flow of the River Little OF THE ENVIRONMENT AND HOW HAVE WE PERFORMED? driven by our purchased electricity for water Stour in Littlebourne, Kent. pumping and distribution. In 2019/20, we In 2019/20 we have had one category one and IDEALLY IMPROVING IT achieved approximately a 30 per cent reduction For the river flow gauging, each AIM site has a two category two pollution incidents as reported in power consumption in peak demand times. low flow trigger point below which AIM applies by the Environment Agency. Our total energy usage saw a reduction during (above this low flow point AIM does not apply). In Kent, we are working with Southern Water to We continue to monitor and report incidents to the year of over 1,280,821 kWh. During AIM periods, performance is measured build an innovative regional groundwater model ensure that we are performing to a high level and compared to a pre-set AIM baseline daily With 12 per cent of the remaining carbon for North Kent. The model uses new software that our processes are working successfully. We abstraction rate (based on average historical intensity from South East Water transport (four which allows detailed modelling of abstraction have an ongoing dialogue with the Environment rates over past 10 years). per cent) and outsourced contractors (eight per sources and refinement around sensitive areas Agency and site visits to ensure that we are cent); we have a drive to improve our analytics of interest. continually improving our overall performance. around our fleet. We have moved to BP’s cloud HOW HAVE WE PERFORMED? The new software will link the groundwater based portal containing our fleet fuel usage At year end we have completed a full year review model with a new eco-hydrology model for the KG OF CARBON EMISSIONS PER which will help us identify inefficient vehicles as first time so we can clearly see how changes well as exploring the potential for electric vans. of AIM. We conclude that AIM was triggered at to groundwater could affect water dependant CUSTOMER PER YEAR both Kingston and Windmill Hill during the year. Abstraction output has been managed at this ecological habitats in North Kent. The model Our outcome is to reduce our impact on the site below the AIM baseline daily abstraction will able be used to sustainably manage water environment by lowering our carbon emissions WE WILL MONITOR OUR rate and so we have met our performance company abstraction and could also be used to per customer per year. This is calculated by total ABSTRACTION AT LOW FLOWS commitment for the year. inform operation during drought periods and carbon emissions divided by the total number of AT ENVIRONMENTALLY future deployable outputs. people supplied. SENSITIVE SITES In 2019/20 we used 44.93 Ml/d less during AIM periods at the agreed sites which gives us a Debbie Wilkinson, Groundwater Manager, said: Our target was to achieve 37.7 kgCO e per person 2 The purpose of the Abstraction Incentive “Restoring sustainable abstractions is such a normalised AIM score for the year of -0.27 Ml/d, by 2019/20. Mechanism (AIM) is to incentivise water diverse multidisciplined area. It is extremely resulting in us performing better than target. important for the business to be sustainable companies, where and when they can, to reduce abstraction from the most environmentally and do the right thing, both for the environment HOW HAVE WE PERFORMED? and customers. sensitive abstraction sources at times of Our performance for 2019/20 is 35.9 kgCO2e per greatest water stress. Ofwat formed an AIM “As a business we have to strike that delicate person beating our target. taskforce, which we were a part of after the balance between abstracting water to treat last price review, charged with developing a We are working hard to reduce carbon emissions and pump to our millions of customers, while reputational based AIM to operate from by continually assessing potential renewable ensuring no deterioration of the environment 1 April 2016. Water companies identified the options, an indepth energy management review, and ideally improving it. abstraction sites to which the AIM applies, based our ongoing customer metering programme, and on guidelines provided by Ofwat and using “Very few people realise the amount of work our capital maintenance plan, replacing older Environment Agency data. South East Water puts in to ensuring it protects assets with newer more efficient pumps which the environment for generations to come.”
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PROTECTING ENDANGERED SPECIES
To maintain the water supply to our 2.2 million Historically, when we needed to undertake work customers, we undertake hundreds of engineering or make changes to a project already underway and operational projects each year to keep water in a location where one of these species could flowing to taps. be present, we had to apply for a licence for the Schemes range from installing new water mains, site from Natural England, detailing all the plans, repairing leaks and building new treatment surveys and mitigation we would undertake to works. All of which require a delicate approach protect the species – a process that would take to the environment to ensure it is protected for two months to complete. Now, because we future generations. have this licence, registering a site with Natural England can take just two weeks, a time saving Many protected species live within our supply that is invaluable to both the environment and area, including great crested newts, hazel engineering teams. dormice and badgers – all requiring special licences to undertake actions such as handling, Mandy Billett, Environmental Performance disturbing or damaging a resting place. Manager, said: “Being one of the first companies to be granted this licence by Natural England is We recently became one of the first in the testament to the hard work and importance the country to be granted a Protected Species company puts on protecting the species and Organisational Licence by Natural England. habitats around us. The licence recognises the best practice work “For many years we have been employing best undertaken for many years in surveying and practice standards when handling and surveying protecting each of these three species when these species and I am delighted that’s been planning and undertaking work. recognised by Natural England in this way. The granting of this licence saves considerable “In order to enter the application process we had time during the project planning and to demonstrate to Natural England that we have implementation stages. consistently met the conditions of other wildlife licences in the past and have process in place to do so in the future.”
PUTTING THE ENVIRONMENT FIRST We're one of the first companies granted the Protected Species Organisational Licence SOUTHEASTWATER.CO.UK 84 PERFORMANCE, PEOPLE AND PLANET 2019/20 85 OUR PERFORMANCE
OUR PEOPLE... OUR PERFORMANCE
A SUMMARY OF OUR PERFORMANCE DURING 2019/20
MAINTAINING OUR NETWORK Keeping tap water flowing crystal clear
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Outcome Incentive type Units Target Performance Reward /penalty £m Outcome Incentive type Units Target Performance Reward /penalty £m if applicable (if applicable) if applicable (if applicable)
Customer Reward/ Score out of Number of breaches Reputational Number 0 0 Not applicable satisfaction penalty five of national security Appearance 4.6 4.5 No penalty obligations Taste and Odour 4.3 4.3 No penalty Number of Reputational Number 0 0 Not applicable Leakage 4.0 3.6 Penalty -£0.111 compliance breaches Interaction 4.5 4.3 Penalty -£0.008 of other statutory Pressure 4.5 4.3 Penalty -£0.027 Interruptions obligations and 4.7 4.6 No penalty licence conditions Water use restrictions 4.1 4.4 Reward £0.048 Discolouration Reward/ Number 0.58 0.53 Reward £0.075 Leakage Reward/ Ml/d 88.1 86.4 Reward £0.220 contacts penalty per 1,000 penalty population
Service Incentive Reward/ Score out of 80 by 78.43 Penalty -£0.500 Above ground asset Penalty only Assessment Stable Stable No penalty Mechanism (SIM) penalty 100 2019/20 calculated performance score by Ofwat at PR19 Final Number of sites at Reputational Number 0 0 Not applicable Determination risk of flooding
Customers consider Reputational % 80 by 74 Not applicable Water mains bursts Penalty only Number 2,429 2,289 No penalty bills to be value for 2019/20 money and affordable Kg of carbon Reputational KgCO2e 37.7 by 35.9 Not applicable emissions per per person 2019/20 Number of properties Reward/ Number 60 25 Reward £0.013 customer per year at risk of low pressure penalty We will monitor Reputational Ml/d 0 -0.27 Not applicable Average interruption Reward/ Minutes 12.0 10.0 Reward £0.266 our abstractions time per property penalty at low flows at environmentally Meeting the water Penalty only Ml/d 0 0 No penalty sensitive sites resource deficit
Mean zonal Penalty only % 100 99.96 No penalty compliance HOW WE PERFORMED Number of breaches Reputational Number 0 21 Not applicable of abstraction Performance exceeded – In reward for In the case of outcomes with a five year target, licences, discharge financial outcomes or performance target the assessment is based on whether our consents and met for reputational outcomes performance is consistent with achieving environmental the target. permits Performance within target range – Number of pollution Reputational 0 3 Not applicable Performance is within the “deadband” (ie To see our performance from previous years visit incidents (category acceptable tolerance) agreed with Ofwat corporate.southeastwater.co.uk/about-us/our- 1-2) performance/ Performance not met – In penalty for Number of Reputational Number 0 0 Not applicable financial outcomes or performance target compliance breaches of Health and Safety not met for reputational outcomes legislation
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OUR PERFORMANCE IN THE LAST FIVE YEARS During the past five years our people have The lessons learned from these severe events We incurred a penalty of £0.5 million under the We have been recognised in 2018 when we worked hard trying to meet or exceed the have been put into action over subsequent years, Service Incentive Mechanism (SIM). Although a became the first water company to receive challenging objectives set within the 2015 to ensuring that taps keep flowing whatever the penalty on SIM was disappointing, we improved the coveted British Standards Institution (BSI) 2020 business plan. weather. This experience also influenced the our ranking under SIM in the period and our verification certification BS 18477, a certificate development of our resilience action plan and performance in 2019/20 corresponds to a 9th we have now held three years in a row. Our cumulative performance over 2015 to 2020 our resilient customer concept in our business place in the water industry. Our performance on resulted in a net penalty of £1.3 million under During the five year period we have promoted plan for 2020 to 2025. complaints reduction was good corresponding to our regulatory ODIs which provides for rewards innovation with dedicated Innovation Champions a top quartile performance compared with the or penalties depending on our performance We have reduced the duration of interruptions fully established and pushing forward new ideas, rest of the water industry. against set targets. This total net penalty relates for each property served from 32 minutes to as well as using the latest technology to develop to some of our operational metrics, SIM and our 10 minutes. We had defined an innovative approach to our smart network strategy to tackle issues such satisfaction metrics as explained below. measure customer satisfaction at the previous as leakage. Between 2015 and 2020 our leakage levels price review and despite improvements in This penalty was mainly due to our performance decreased year-on-year and we have halved the customer satisfaction we did not achieve the in relation to interruptions to water supplies number of customers across our supply area at degree of improvement that we had targeted which was affected by two exceptional incidents risk of low pressure. We have improved resilience which resulted in a penalty of £0.271 million. Our in the 2015 to 2020 period: the burst of a trunk by reducing the number of sites at risk of satisfaction score from customers who had a main which affected the supplies to a large flooding from 55 to zero. direct interaction with us is 4.3 out of 5 (and our number of customers between 10 and 11 May The performance in the last year of the 2015 to target was 4.5). 2015 and the extreme weather event, known as 2020 period concluded with a net ODI reward the Beast from the East, between 24 February on operational measures (excluding SIM and our 2018 and 3 March 2018 which resulted in a large customer satisfaction improvement metrics) number of supply interruptions driven in the showing an improvement of our underlying main by leaks within customers’ pipework. performance on operational metrics.
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A SUMMARY OF OUR PERFORMANCE 2015 TO 2020
Actual performance Target performance Reward/penalty (£millions)
Outcome Unit 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20
Customer satisfaction Appearance Score out of 5 4.4 4.5 4.5 4.5 4.5 4.6 4.6 4.6 4.6 4.6 n/a 0.000 0.000 0.000 0.000
Taste and odour Score out of 5 4.1 4.2 4.2 4.2 4.3 4.3 4.3 4.3 4.3 4.3 n/a 0.000 0.000 0.000 0.000
Leakage Score out of 5 3.4 3.8 3.8 3.6 3.6 4.0 4.0 4.0 4.0 4.0 n/a -0.037 -0.037 -0.111 -0.111
Direct interaction Score out of 5 4.2 4.3 4.3 4.3 4.3 4.5 4.5 4.5 4.5 4.5 n/a -0.008 -0.008 -0.008 -0.008
Low pressure Score out of 5 4.2 4.2 4.3 4.3 4.3 4.5 4.5 4.5 4.5 4.5 n/a -0.054 -0.027 -0.027 -0.027
Supply interruptions Score out of 5 4.6 4.6 4.6 4.6 4.6 4.7 4.7 4.7 4.7 4.7 n/a 0.000 0.000 0.000 0.000
Water use restrictions Score out of 5 4.2 4.4 4.4 4.4 4.4 4.1 4.1 4.1 4.1 4.1 n/a 0.048 0.048 0.048 0.048
Other performance metrics Leakage Megalitres per day 88.1 88.6 87.7 86.9 86.4 91.8 90.9 90.0 89.1 88.1 0.847 0.410 0.189 0.378 0.220 (Ml/d)
Customers consider bills Percentage 71 74 71 73 74 n/a n/a n/a n/a 80 to be value for money and (%) affordable
Number of properties at Number of properties 53 49 47 47 25 60 60 60 60 60 0.002 0.003 0.004 0.004 0.013 risk of low pressure
Average interruption time Average per property 32.1 12.9 44.6 14.2 10.0 12.7 12.3 12.0 12.0 12.0 -0.931 0.000 -1.330 -0.293 0.266 per property
Meeting the water resource Number 100 100 100 100 100 100 100 100 100 100 0.000 0.000 0.000 0.000 0.000 deficit
Mean Zonal compliance Percentage 99.96 99.95 99.95 99.98 99.96 100 100 100 100 100 0.000 0.000 0.000 0.000 0.000 (%)
Number of breaches of Number 25 5 215 11 21 0 0 0 0 0 abstraction licences, discharge consents and environmental permits
Number of pollution incidents Number 0 2 1 1 3 0 0 0 0 0 (Category 1-2)
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A SUMMARY OF OUR PERFORMANCE 2015 TO 2020 continued
Actual performance Target performance Reward/penalty (£millions)
Outcome Unit 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20
Number of compliance Number of breaches 0 0 0 0 0 0 0 0 0 0 breaches of Health and Safety legislation
Number of breaches of Number of breaches 0 0 0 0 0 0 0 0 0 0 National security obligations
Number of compliance Number of breaches 0 0 0 1 0 0 0 0 0 0 breaches of other statutory obligations and licence conditions
Discolouration contacts Number of 0.98 0.96 0.82 0.59 0.53 0.97 0.78 0.58 0.58 0.58 0.000 0.000 -0.360 -0.015 0.075 discolouration contacts
Above ground asset Assessment Stable Stable Stable Stable Stable Stable Stable Stable Stable Stable 0.000 0.000 0.000 0.000 0.000 performance
Number of sites at risk Number of sites 55 33 7 2 0 n/a n/a n/a n/a 0 of flooding
Water mains burst Number of bursts 2307 3032 2747 2826 2289 2429 2429 2429 2429 2429 0.000 0.000 0.000 0.000 0.000
KG of cabon emissions kgCO2e per person 36.8 37.2 37.2 36.3 35.9 n/a n/a n/a n/a 37.7 per customers per year
We will monitor our Ml/d n/a -0.18 -0.24 -0.10 -0.27 Zero Zero Zero Zero Zero abstractions at low flows at environmentally sensitive sites
Total reward/penalty for -0.082 0.362 -1.521 -0.023 0.476 South East Water specific ODIs*
*If the reward/penalty line is blank it is because it’s a reputation only measure
Actual performance Target performance Reward/penalty (£millions)
Outcome Unit 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20
Service Incentive Mechanism Score out of 100 82 84.6 85.6 85.4 78.4 n/a n/a n/a n/a n/a n/a n/a n/a n/a -0.500 (SIM) score
Year 5 performance not comparable due to change in methodology
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A SUMMARY OF OUR PERFORMANCE 2015 TO 2020 continued
CUSTOMER SATISFACTION - SCORE OUT OF 5 WATER RESOURCE DEFICIT - ML/D SITES AT RISK OF FLOODING - No. OF SITES
APPEARANCE INTERACTION 100 60 5.0 5.0 90 45 4.5 4.5 80 30 4.0 4.0 70 15 3.5 3.5 60 0 3.0 3.0 50 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 TASTE AND ODOUR PRESSURE BURSTS MAINS - NUMBER OF MAINS 5.0 5.0 - % MEAN ZONAL COMPLIANCE 3500 4.5 4.5 100 3000 4.0 4.0 90 2500 3.5 3.5 15/16 16/17 17/18 18/19 19/20 2000 3.0 3.0 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 LEAKAGE WATER USE RESTRICTIONS BREACHES – ABSTRACTION, 5.0 5.0 DISCHARGE, PERMITS - NUMBER CARBON EMISSIONS - KGCO2E PER PERSON 4.5 4.5 250 37.5 4.0 4.0 200 37 3.5 3.5 150 36.5 3.0 3.0 36 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 100 35.5 INTERRUPTIONS 50 15/16 16/17 17/18 18/19 19/20 25 5.0 0 4.5 15/16 16/17 17/18 18/19 19/20 AIM - ML/D 4.0 3.5 -10 POLUTION INCIDENTS - NUMBER 3.0 -15 15/16 16/17 17/18 18/19 19/20 4 -20 3 -25 2 -30 1 LEAKAGE - ML/D LOW PRESSURE - No. OF PROPERTIES 16/17 17/18 18/19 19/20 0 89 55 15/16 16/17 17/18 18/19 19/20 SIM SCORE - SCORE OUT OF 100 88 45 87 35 86
86 25 DISCOLOURATION CONTACTS 85 - PER 1,000 POPULATION 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 84 1.0 83 82 VALUE FOR MONEY - PERCENTAGE INTERRUPTIONS - MINUTES 0.9 0.8 81 75 50 0.7 80 74 40 0.6 79 73 30 0.5 78 72 20 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 71 10 Year 5 performance not comparable due to 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 change in methodology
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ASSURANCE SUMMARY OUR FUTURE
We are committed to ensuring the data and In January 2019 Ofwat published its Company WHAT TO EXPECT 2020 TO 2021 After a year of benchmarking, C-MeX and D-MeX, information provided to our customers is Monitoring Framework Assessment in which the new customer and developer experience At the time of writing the country was still reliable, robust and complete. In order to achieve we were commended for the quality of the measures will come into full force. The measures social distancing due to the Covid-19 pandemic. this we have an assurance structure that is split performance information we publish for some replace the Service Incentive Mechanism (SIM) We have been engaging with our employees into three levels to ensure that the level of areas, but identified as having some minor which was introduced in 2010 to measure and stakeholders to develop our future plans scrutiny is appropriate. Further details can be concerns in some of the other areas. The excellence surrounding customer service. to decide what our ‘new normal’ will be once found in our company monitoring framework: conclusion of this means we are in the targeted restrictions are fully lifted. southeastwater.co.uk/cmf category. Despite this, there is lots to look forward to: Assurance is both internal which includes peer This status means that we are required to publish reviews, manager sign off, executive and board a full analysis of the strengths, risks and issues We begin a new five-year contract with Clancy to oversight and external through our assurance in relation to data and information provision and deliver all repairs, maintenance, planned mains partners. we need to publish a summary of the outcome renewals, new mains and new connections. For of the assurance that has been carried out. the first time the teams will wear South East Jacobs is our independent assurance partners In practice we have always published this for Water uniforms and drive branded vans in a move whose role is to assist the board to ensure these elements so the format of our company designed to improve the customer experience. completeness of the annual reporting, monitoring framework remains unchanged. compliance with relevant duties and obligations, After a successful year-long trial of a Smart and to ensure that the information we provide Full details of our data assurance summary can Network system, we’re taking all the to demonstrate compliance with our relevant be found at the following location: learnings forward into a plan to roll the duties and obligations is consistent, comparable, corporate.southeastwater.co.uk/news-info/ technology out into priority areas reliable and robust. They presented their report publications/financial-reports across the company during 2020/21. and findings to the audit and risk committee As was shown in the trial we expect which reports into the board. to see a reduction in leaks and bursts alongside many other To ensure that we continue to report reliable, benefits for customers. robust and complete information we will be producing an updated company monitoring The £22 million expansion of our framework and assurance plan for 2020/21 to Bray Keleher Water Treatment be published in autumn 2020. The findings from Works in Berkshire will complete annual audits for 2019/20 will be incorporated and once it does, the amount of into the process of updating our risk water the site can treat will assessments and assurance plans. increase from 45 million litres a day, to 68 million litres, ensuring a secure supply of top quality drinking water to Hampshire, Berkshire and Surrey for decades to come.
A NEW LOOK New uniforms and vans for our teams installing, upgrading and repairing our vast pipeline network SOUTHEASTWATER.CO.UK 98 PERFORMANCE, PEOPLE AND PLANET 2019/20 99 OUR PERFORMANCE
THE FUTURE continued
WITHIN THE BUSINESS PLAN, BY 2025 WE HAVE COMMITTED TO:
AWARDS Underpinning the plan are 38 stretching OUR CUSTOMERS OUR BEHAVIOUR performance commitments and 10 responsible reducing the average bill by reducing leaks by 15 per cent In July the WWT Water Industry Awards business measures. Built around our customer’s • • 7.2 per cent in real terms so it’s 2020 are due to take place and we have preferences, thousands took part in studies to • investing £433 million in our water £190 during 2024/2025 been shortlisted for four awards: help shape the plan which in centred around five supply network key areas: • extending financial assistance • Water Company of the Year • greater innovation through to 75,000 eligible customers partnership working and toolboxes • Data Project of the Year • customer satisfaction • increasing Priority Service playing an active role regionally in – Smart Water Network • developing a resilient customer • Sign ups to 110,000 relation to housing growth and the • Water Innovation Project of the Year • innovation centred around customer and building customer resilience by impact on water – Smart Water Network • stakeholder priorities reducing average water use by • ensuring fair pay, reward and • Skills and workforce innovation of the year • 10 new responsible business commitments 7.2 per cent to 137.4 litres a day recognition for all employees – Developing a business wide innovation • moving away from the average champion community • delivering high performance levels far beyond • improving our health, safety and any we have committed to previously customer to greater targeting wellbeing of staff and communities The awards recognise great customer service, of customers through use of excellent investment in both technology and We have also developed a clear purpose attitudinal segmentation staff skills and wellbeing. statement which we are in the process of embedding: • creating six new vulnerability WHAT TO EXPECT 2020 TO 2025 measures “To provide today’s public water service and In September 2018 we published our most create tomorrow's water supply solutions, fairly ambitious and innovative business plan yet and responsibly, working with others to help which set out how we will do more as a society and the environment to thrive.” business while reducing bills during the period up to 2025. A clear purpose is a key step in our move to focus OUR COMMUNITY OUR PLANET the business on what matters to customers, the Following a review process during 2019 with community and society and is integral to our • creating more partnership • increasing our resilience to drought Ofwat we have now finalised our plans for community projects on water plans for the 2020 to 2025 period and beyond. • reducing greenhouse gas emissions 2020 to 2025. use and vulnerability by 80 per cent We will continue to engage with customers, • further support of the tap water communities, employees, regulators and • extending our conservation work Refill campaign shareholders to ensure we make a positive on 10 NEPs to enhance biodiversity impact today and our community continues • developing a future generation and wildlife to flourish in the future. schools programme • moving 33 of our Sites of Special • working with businesses and Scientific Interest to favourable organisations to improve how condition we provide help during a period • providing greater wildlife protection of no water and biodiversity enhancements at 15 of • building on current stakeholder our sites in the South Downs National partnerships and forming new Park and at 11 of our woodlands ones to improve resilience • building more wildlife corridors
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OUTCOME DEFINITIONS
CUSTOMERS CONSIDER THE APPEARANCE CUSTOMERS CONSIDER THE LEVEL OF OF THEIR WATER TO BE ACCEPTABLE LEAKAGE TO BE ACCEPTABLE
INCENTIVE TYPE INCENTIVE TYPE Financial – reward or penalty. Financial – reward or penalty. Managing Director, Paul Butler, said: “This is the most ambitious plan we have ever produced. OUTCOME DESCRIPTION OUTCOME DESCRIPTION It recognises our wider responsibilities as Customer satisfaction as measured through Customer satisfaction as measured through the provider of an essential service and as an satisfaction tracking research, as a score out satisfaction tracking research, as a score out important local employer for the region. of five. of five. WE ARE MAKING COMMITMENTS HOW MEASURED? HOW MEASURED? “We are making commitments in this plan to IN THIS PLAN TO WORK HARD work hard for our local communities, whether Monthly surveys undertaken by a third party Monthly surveys undertaken by a third party that is ensuring a reliable, secure supply of FOR OUR LOCAL COMMUNITIES, provider. Annual average calculated. Score provider. Annual average calculated. Score water for customers, or doing more for the WHETHER THAT IS ENSURING A rounded to one decimal place. rounded to one decimal place. environment around us, by helping to protect RELIABLE, SECURE SUPPLY OF HOW IS OUR REWARD OR PENALTY HOW IS OUR REWARD OR PENALTY wildlife habitats or continuing to innovate to CALCULATED? CALCULATED? reduce leaking pipes further. WATER FOR CUSTOMERS Reward and penalties applicable from 2016/17 Reward and penalties applicable from 2016/17 onwards. Incentive calculated annually, accrued onwards. Incentive calculated annually, accrued “Our plan is ambitious, delivering customer to the end of the period and applied in the to the end of the period and applied in the satisfaction in a responsible way while reducing 2019 price setting process. Reward/penalty will 2019 price setting process. Reward/penalty will the average annual bill to £190 before inflation be an adjustment to revenue. be an adjustment to revenue. for the next five years.
“South East Water is driven by the same values CUSTOMERS CONSIDER THEIR DIRECT CUSTOMERS CONSIDER THE TASTE AND of trust as our customers. We are a local water INTERACTION EXPERIENCE TO BE POSITIVE ODOUR OF THEIR WATER TO BE ACCEPTABLE company made up of dedicated water people who want to make a difference so that everyone INCENTIVE TYPE INCENTIVE TYPE and everything thrives as a result of what we do.” Financial – reward or penalty. Financial – reward or penalty. To read the plan visit OUTCOME DESCRIPTION OUTCOME DESCRIPTION southeastwater.co.uk/businessplan Customer satisfaction as measured through Customer satisfaction as measured through satisfaction tracking research, as a score out We’ll look forward to reporting on our satisfaction tracking research, as a score out of five. of five. performance in July 2021. HOW MEASURED? HOW MEASURED? If you are interested in our progress do follow us Monthly surveys undertaken by a third party Monthly surveys undertaken by a third party on Twitter, Facebook and Instagram for updates provider. Annual average calculated. Score provider. Annual average calculated. Score on our work through the year. rounded to one decimal place. rounded to one decimal place. HOW IS OUR REWARD OR @SEWaterUK HOW IS OUR REWARD OR PENALTY CALCULATED? PENALTY CALCULATED? SEWaterUK Reward and penalties applicable from 2016/17 Reward and penalties applicable from 2016/17 onwards. Incentive calculated annually, accrued onwards. Incentive calculated annually, accrued officialsewateruk to the end of the period and applied in the to the end of the period and applied in the 2019 2019 price setting process. Reward/penalty will price setting process. Reward/penalty be an adjustment to revenue. will be an adjustment to revenue.
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CUSTOMERS CONSIDER THEIR WATER LEAKAGE LEVEL SERVICE INCENTIVE MECHANISM (SIM) AVERAGE TIME LOST PER PROPERTY SUPPLY IS OF SUFFICIENT PRESSURE
INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE Financial – reward or penalty. Financial – reward or penalty. Financial – reward or penalty. Financial – reward or penalty. OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION Actual reported leakage per Ml/d per year. SIM is a mixture of surveys with customers Average time lost, in minutes, per property Customer satisfaction as measured through Calculation of leakage as defined for the Ofwat who have made contact with the company served. satisfaction tracking research, as a score out KPI in IN13/03 adjusted to reflect post MLE and the number of complaints we receive. of five. HOW MEASURED? (maximum-likelihood estimation) calculation. HOW MEASURED? Number of customers interrupted, multiplied HOW MEASURED? HOW MEASURED? SIM score calculated using the methodology by the number of minutes, divided by the total Monthly surveys undertaken by a third party Performance commitment reported on post outlined in the performance measure number of customers. provider. Annual average calculated. Score maximum likelihood basis. Measured on an definition. Measured on an annual basis. rounded to one decimal place. HOW IS OUR REWARD OR PENALTY annual basis to one decimal place. HOW IS OUR REWARD OR PENALTY CALCULATED? HOW IS OUR REWARD OR PENALTY HOW IS OUR REWARD OR PENALTY CALCULATED? Incentive calculated annually, accrued to the CALCULATED? CALCULATED? Under the existing mechanism for SIM, any end of the period and applied in the 2019 price Reward and penalties applicable from 2016/17 Incentive calculated annually, accrued to the reward or penalty will be applied in the setting process. Reward/penalty will be an onwards. Incentive calculated annually, accrued end of the period and applied in the 2019 price PR19 price setting process and any reward adjustment to revenue. to the end of the period and applied in the setting process. Reward/penalty will be an or penalty. 2019 price setting process. Reward/penalty will adjustment to revenue. be an adjustment to revenue.
CUSTOMERS CONSIDER THE CUSTOMERS CONSIDER THE FREQUENCY CUSTOMERS CONSIDER BILLS TO BE VALUE PROPERTIES AT RISK OF FREQUENCY AND DURATION OF SUPPLY OF WATER USE RESTRICTIONS TO BE FOR MONEY AND AFFORDABLE LOW PRESSURE INTERRUPTIONS IS ACCEPTABLE ACCEPTABLE
INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE Financial – reward or penalty. Financial – reward or penalty. Reputational. Financial – reward or penalty. OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION Customer satisfaction as measured through Customer satisfaction as measured through Customer satisfaction as measured Number of properties at risk of low pressure, satisfaction tracking research, as a score out satisfaction tracking research, as a score out through satisfaction tracking research, as recorded by the DG2 register. of five. of five. as a percentage. HOW MEASURED? HOW MEASURED? HOW MEASURED? HOW MEASURED? Measured and reported annually. DG2 Monthly surveys undertaken by a third party Monthly surveys undertaken by a third party Annual tracker survey in line with the baseline methodology for recording/calculating. provider. Annual average calculated. Score provider. Annual average calculated. Score method. Average of scores calculated. HOW IS OUR REWARD OR rounded to one decimal place. rounded to one decimal place. PENALTY CALCULATED? Incentive calculated annually, accrued to the HOW IS OUR REWARD OR PENALTY HOW IS OUR REWARD OR PENALTY end of the period and applied in the 2019 price CALCULATED? CALCULATED? setting process. Reward/penalty will be an Reward and penalties applicable from 2016/17 Reward and penalties applicable from 2016/17 adjustment to revenue. onwards. Incentive calculated annually, accrued onwards. Incentive calculated annually, accrued to the end of the period and applied in the to the end of the period and applied in the 2019 price setting process. Reward/penalty will 2019 price setting process. Reward/penalty will be an adjustment to revenue. be an adjustment to revenue.
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OUTCOME DEFINITIONS continued
NUMBER OF POLLUTION INCIDENTS OTHER STATUTORY OBLIGATIONS AND MEAN ZONAL COMPLIANCE MEETING THE WATER RESOURCE DEFICIT (CATEGORY 1-2) LICENCE CONDITIONS – NUMBER OF BREACHES
INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE Financial – penalty only. Financial – penalty only. Reputational. Reputational. OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION The mean zonal compliance percentage, based Delivery of enhancements to supply, both The number of category one or two pollution The number of compliance breaches with our on current regulations and standards and as supply side and demand side measures, to incidents as reported by the Environment statutory obligations and licence conditions, not reported to the Drinking Water Inspectorate ensure zero deficit in the company supply Agency. already reported in performance on outcomes I (DWI). demand balance in any year. through to K. HOW MEASURED? HOW MEASURED? HOW MEASURED? Annual report provided by the Environment HOW MEASURED? Mean zonal compliance is measured as a Zero company level deficit measured by the Agency and discussed with South East Water. The number of prosecutions and enforcement percentage based on samples taken. security of supply assessment calculation. actions during the year.
Measured as a pass or fail. HOW IS OUR REWARD OR PENALTY
CALCULATED? HOW IS OUR REWARD OR PENALTY Incentive calculated annually, accrued to the CALCULATED? end of the period and applied in the 2019 Incentive calculated annually, accrued to the price setting process. The penalty will be an end of the period and applied in the 2019 adjustment to revenue. price setting process. The penalty will be an adjustment to revenue.
NUMBER OF BREACHES OF ABSTRACTION NATIONAL SECURITY OBLIGATIONS – LICENCES, DISCHARGE CONSENTS AND DISCOLOURATION CONTACTS NUMBER OF BREACHES ENVIRONMENTAL PERMITS (PER 1,000 POPULATION) WATER MAINS BURSTS
INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE Reputational. Reputational. Financial – reward or penalty. Financial – penalty only. OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION The number of compliance breaches of the The number of breaches of abstraction Number of discolouration contacts (orange/ Number of burst mains. Security and Emergency Measures Directive licences, discharge consents and environmental black/brown) per 1,000 population, as defined by HOW MEASURED? (SEMD). Failure to deliver the required activities permits as measured by the reporting the below ground serviceability indicator. Number of burst mains. to meet Defra Advice Notes under SEMD. procedures to the Environment Agency. HOW MEASURED? HOW IS OUR REWARD OR PENALTY HOW MEASURED? HOW MEASURED? Measured to two decimal places. CALCULATED? Number of breaches as per the Security We have developed a traffic light system to HOW IS OUR REWARD OR PENALTY Incentive calculated annually, accrued to the Services and Defra. These are identified as give greater clarity to our customers should we CALCULATED? end of the period and applied in the 2019 price events where we would be required to notify have any breaches. Incentive calculated annually, accrued to the setting process. Reward/penalty will be an these authorities. Categories are as follows: Abstraction licences: end of the period and applied in the 2019 price adjustment to RCV. • security breaches that causes us a Annual licences: Green 0 setting process. Reward/penalty will be an major incident Amber 1 adjustment to RCV. Red 2+ • loss of supply for more than 24 hours due to a security event Daily licences: Green <15 Amber 15-25 • any security event where contact with Red >25 external government body is necessary Discharge consents: Green <7 • any other significant security event Amber 7-9 (e.g. a cyber-attack) Red >9
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OUTCOME DEFINITIONS continued
WE WILL MONITOR OUR ABSTRACTIONS AT LOW FLOWS AT ENVIRONMENTALLY NUMBER OF SITES AT RISK OF FLOODING SENSITIVE SITES ABOVE GROUND ASSET PERFORMANCE
INCENTIVE TYPE INCENTIVE TYPE INCENTIVE TYPE HOW MEASURED? Reputational. Reputational. Financial – penalty only. Measurement based on serviceability indicators, reference levels and upper OUTCOME DESCRIPTION OUTCOME DESCRIPTION OUTCOME DESCRIPTION control limits. The number of company sites at risk of flooding For agreed environmentally sensitive Serviceability assessment of above ground as defined in the business plan. abstraction sites, this is a measure of whether asset performance. Assessed as stable or The following guidelines apply to this outcome abstractions are reduced below average levels marginal. Above ground asset performance to explain the assessment: HOW MEASURED? to support the environment. comprises of four serviceability indicators: Based on a 1 in 200 year EA forecast • we have committed to performance levels of flooding. HOW MEASURED? • water treatment works coliforms non- and must be within the reference band Abstraction levels during periods of low flow compliance – the number of treatment on all four measures to receive a “stable”
and environmental stress are compared to works where the samples taken contained classification, otherwise we are deemed as
normal levels. “marginal” coliforms (a form of bacteria) • service reservoir coliforms non-compliance • the penalty applies when marginal is NUMBER OF COMPLIANCE BREACHES OF KG OF CARBON EMISSIONS PER CUSTOMER – The number of service reservoirs reported for three consecutive years, and HEALTH & SAFETY LEGISLATION PER YEAR where more than five per cent of the each consecutive year thereafter, until at samples taken exceeded the maximum least two consecutive stable years concentration required for coliform bacteria INCENTIVE TYPE INCENTIVE TYPE • the first stable year following three or more Reputational. Reputational. as a percentage of the number of service consecutive marginal years will attract a reservoirs tested for microbiological OUTCOME DESCRIPTION OUTCOME DESCRIPTION penalty of 50 per cent of the total penalty parameters The number of breaches of health and safety Average kg of carbon emissions per customer. • only after two consecutive stable years regulations, as defined by the Health and • turbidity – is the cloudiness or haziness HOW MEASURED? would the cumulative marginal assessment Safety Executive. caused by large numbers of particles that are be re-set Total carbon dioxide equivalent emissions generally invisible to the naked eye HOW MEASURED? divided by total number of customers supplied. • reporting frequency to the Customer Panel Number of: • enforcement incidents – incidents which Measured as kgCO e per customer increases to quarterly when one indicator is 2 have triggered a formal enforcement action • prosecutions above the upper limit for two consecutive Target by the end of 2019/20: against the company on above ground assets years or when two indicators are above the prohibition notices – cannot operate until • revised target 37.7 The targets shown on page 44 are the upper upper limit in any year improvement • control limits described in the following • reporting frequency to Ofwat increases to improvement notices – can operate but must section. • every six months when two indicators are make required improvement above the upper limit and quarterly when more than two are above the upper limit HOW IS OUR PENALTY CALCULATED? Incentive calculated annually, accrued to the end of the period and applied in the 2019 price setting process. The penalty will be an adjustment to RCV.
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Regulation and Strategy South East Water Limited Snodland Kent ME6 5AH