Utility giant South West Water is to hand out £20million to customers who can choose whether to take the bounty as £20 slashed from their bill or shares in the company.
The Exeter-headquartered firm is sharing the cash after outperforming on its most recent business plan and beating its targets. From Monday, September 21, customers are being invited to choose how they would like to receive their £20. It can be taken as a credit on water bills or shares in Pennon Group Plc, South West Water’s (SWW) parent company.
It’s part of a unique scheme called WaterShare+, an innovative feature of SWW’s 2020-25 New Deal business plan. Shaped “by customers for customers”, the firm said it represents the output of SWW’s biggest ever customer consultation.
It is designed to share the company’s success with customers of SWW and Bournemouth Water, which was acquired in 2015, and is designed to give them a greater say in the business.
Customers who choose not to have shares will automatically receive a £20 credit on their next bill. But, whatever they choose, customers are also being invited to have more say in how the business is run. From January 2021 they’ll be able to take part in customer-led panel meetings and quiz directors on progress against plans.
Susan Davy, Pennon Group chief executive, said: “This innovative scheme is about doing the right thing, ensuring our customers remain at the heart of our service and success.
“Driven by our values and guided by what customers want, we hope WaterShare+ will build new levels of trust and transparency.
“Society expects water companies to do more than deliver the basics. WaterShare+ is one of the ways we’re rising to the challenge.
“ It symbolises who we are as a business, supporting the lives of people and the places they love for generations to come.”
Other highlights of the New Deal include lower bills, additional support for those most in need, and more than £1billion of extra spending to improve services, including the biggest environmental improvement programme for 15 years.
The WaterShare+ Scheme was approved by shareholders at Pennon's annual meeting on July 31, 2020. A Prospectus has been produced in connection with the WaterShare+ Scheme Offer which has now been approved by the Financial Conduct Authority. The prospectus sets out the details of the WaterShare+ Scheme Offer and will shortly be available on Pennon's website.
Pennon’s full year results to the end of March 2020 revealed after-tax profits had fallen from £222.6million to £206.3million, a 7.3% drop.
The firm blamed a 2% hike in taxes for the fall, increasing its bill from £37.7million to £95.2millon, and stressed that its underlying profit was therefore up by more than £7million to £287.6million. Revenue, however,declined from £1,478million to £1,390million, a 6% slip.
