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December 2019 Business Plan Wales & West Utilities Our business plan for 2021-26 A sustainable business in a changing and dynamic sector December 2019 Summary Meeting the needs of Delivering value Delivering an environmentally Maintaining a safe Financeability A of our plan B consumers and network users C for money D sustainable network E and resilient network F A guide to using this plan Legal notice To the maximum extent permitted by law, No statement in this Document is intended the Company excludes: to be or may be construed as a profit forecast. This interactive PDF is designed to help you easily This Document has been published to the Past performance is not indicative of future – all undertakings, representations, warranties navigate our plan and find the information you Company’s website for information purposes performance. Any forecasts, figures, opinions, or other assurances (express or implied, are looking for. For the best experience, it is only, and use of or reliance on this Document statements of market trends or business statutory or otherwise) in connection with this recommended that this document is viewed by any person is at their sole risk. By opening strategies expressed are those of the Company, Document and the information and opinions in Adobe Acrobat Reader. this Document, such persons agree to be bound unless otherwise stated, as of the date of contained herein; and by the limitations as set out in the Legal Notice’s publication and may be subject to change. Guide to the navigation buttons: located within the Document. – any responsibility or liability (whether direct Neither the Directors nor the Company undertake or indirect, in contract, tort or otherwise) Use the tabs and buttons at the top of the An actual or prospective investor in any any obligation to update, or to correct any as a result of the use of or reliance page to navigate between sections and around securities issued by the Company or any parent inaccuracies which become apparent in, this on (or inability to use or rely upon) this the document. undertaking of the Company should not rely Document other than as required by any relevant Document or the information and opinions on the information contained in this Document regulatory authority, whether as a result of new contained herein. Return to contents page for the purposes of any investment decision or information, future events or otherwise. otherwise. This Document is not a prospectus nor Page back is it a “financial promotion” within the meaning of Nothing in this notice shall be taken to limit Except where stated to the contrary, all financial or exclude any liability which may not otherwise values within this paper are stated in 2018/19 Page forward section 21 of the Financial Services and Markets Act 2000, and it has not been published with by limited or excluded under applicable law. prices, inclusive of 0.5% pa compounding efficiency and prior to real price effects. This Return to previous view the intention of inducing any person to make any This Document contains forward-looking investment decision in relation to securities issued is in order that they match the figures used within Search statements. In some cases, forward-looking the detail of the Business Plan Data Template. by the Company or any such parent undertaking statements can be identified by their use of terms or of influencing any such decision. such as “believe”, “could”, “envisage”, “estimate”, Guide to dynamic links: Business plan Nothing in this Document should be construed “intend”, “may”, “plan”, “will” or the negative of Click on the dynamic links throughout the document redaction statement as investment, legal or other advice, and no those, variations or comparable expressions, to access further relevant content. actual or prospective investor should act upon including references to assumptions or by In the interests of transparency and any information contained herein without first discussions of the Company’s future prospects, to facilitate meaningful stakeholder Link to business plan data tables consulting a financial or other professional adviser. developments and business strategies. By their engagement, no content from this business nature, forward-looking statements involve risk 3 Link within the plan plan document has been redacted. There are Neither the publication or delivery of this Document and uncertainty because they relate to future nor any subsequent subscription or sale made in a small number of appendices which have Appendix X Link to document outside of the plan events and circumstances. respect of any securities issued by the Company been redacted, in part or in whole, on the or any parent undertaking of the Company shall, The forward-looking statements in this Document grounds of commercial confidentiality Guide to the icons: under any circumstances, create any implication are based on prevailing financial, economic and or market sensitivity. market conditions and current expectations as This logo denotes our Consumer that the information contained in this Document CVP CVP at the date of this Document – actual outcomes net zero is correct as of any time subsequent to the date Value Proposition (CVP) Click for our Redaction Explanatory Statement of this Document. and results may differ materially from any published alongside our business plan. This logo denotes where our plan outcome or results expressed or implied aligns to the SDGs by such forward-looking statements. This logo denotes innovation throughout the plan Wales & West Utilities | Business Plan 2021–26 Summary Meeting the needs of Delivering value Delivering an environmentally Maintaining a safe Financeability A of our plan B consumers and network users C for money D sustainable network E and resilient network F Contents Summary Foreword 3 Delivering an 13. Our net zero ready vision for 2035 110 A of our plan 1. Executive summary 4 D environmentally 14. E nvironmental Action Plan 126 2. Our consumer value proposition 14 sustainable 3. Outputs and incentives 18 network 4. Track record 25 5. Giving customers and stakeholders 15. Asset resilience 138 35 Meeting a stronger voice Maintaining 16. The distribution network 148 B the needs of 6. Customer service 52 E a safe and 17. Connecting homes 164 consumers and 7. Social obligations 62 resilient network and businesses network users 18. Transmission and 173 pressure management 19. Workforce resilience 181 20. Cyber resilience 188 21. Business IT security plan 189 Delivering value 8. Customer bills 73 Financeability 22. Financeability 195 C for money 9. Cost efficiency 77 F 10. Using competition to deliver best value 87 11. Our innovation strategy 92 12. Dealing with uncertainty 104 Click our Business Plan Data Click here to see a full Appendix list with hyperlinks 198 Tables (BPDT) for detailed cost and workload information to support our submission. Wales & West Utilities | Business Plan 2021–26 1 A Summary of our plan This section of our business plan In this section: summarises our commitments Foreword to customers. 3 Strategic overview of our plan from our Chairman and Chief Executive. We also set out our proposed 1. Executive summary level of expenditure, as well 4 as the outputs we will deliver Overall summary setting out our vision for the future, the views of our customers as part of the RIIO framework. and stakeholders, and our GD2 commitments. All of this is built on a strong track 2. Our consumer value proposition record of delivery, which is also 14 summarised here. How we are delivering for our customers above and beyond the minimum requirements measured by our Social Return on Investment Tool. 3. Outputs and incentives 18 The outputs and incentives contained in our business plan – including those that are common to all networks and those bespoke to us. 4. Track record 25 Our GD1 performance and the outcomes delivered for customers. Summary Meeting the needs of Delivering value Delivering an environmentally Maintaining a safe Financeability A of our plan B consumers and network users C for money D sustainable network E and resilient network F Foreword Welcome to our business plan In response to the increasing importance our customers and stakeholders place on the Our plan puts customers at its core and has environment and wider sustainability issues, been developed in partnership with them, we are committed to becoming an even more We are pleased to present along with diverse stakeholders. We have had sustainable business in GD2, aligning our extensive conversations, combining far-reaching commitments to the United Nations Sustainable our business plan for 2021-26, engagement with granular, in-depth research. Development Goals (SDGs). This is our most ambitious and stretching plan This progressive global movement will support which has been developed ever, but one we are confident about delivering our efforts to bring a sharper focus on the broader based on our history as a leading performer. societal goals that we can help to achieve. We are We are proud of our record to date, and we see already putting this into action, and this plan in partnership with our the opportunity in the next five years to take our includes stretching goals to reduce our own carbon ambitions further. footprint and to work towards becoming a zero- customers and stakeholders. Our aim is to deliver a net zero ready network by waste company. We are also giving stakeholders 2035 – using our position as a leading player in more of a say in the future of the business through the future energy space to put forward a bold and our enhanced engagement plans for GD2. credible plan that will support the decarbonisation Graham Edwards This document sets out our aspirations to of heat, power, and transport in our region. Chief Executive invest almost £1.2bn to support customers and Based on a whole systems approach, our plan society more broadly than ever before – which includes a clear, low-cost pathway to deliver our can only be delivered with proper funding, as vision, informed by robust scientific evidence and laid out in this document.
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