Bournemouth & West Hampshire Water - company plan for future services
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BOURNEMOUTH & WEST HAMPSHIRE WATER

A summary of our Business Plan Submission to Ofwat - April 1999

 OVERALL STRATEGY FOR THE AMP3 PERIOD AND TOP STRATEGIC OBJECTIVES

1. Meet legal quality and environmental obligations as defined by quality regulators and ministers in respect of :-

Reducing the risk of cryptosporidium contamination   

Alleviating low flows on the River Allen

2.Maintain serviceability of the asset base through an appropriate level of maintenance and to maintain an economic level of leakage.

3. Balance Supply and Demand notably at peak through metering and through asset enhancement and water efficiency measures.

4. Enhance security of essential supplies against the risk of source pollution of our direct abstractions.

5. Reduce the number of properties at risk of receiving low pressure to industry average levels.

6. Achieve the strategy at the lowest possible cost thereby minimising the impact on customers bills and to keep price rises level over the period to provide predictability in line with customers wishes.




PROPOSED PRICE LIMITS & EFFECT ON AVERAGE BILLS
  TOP 7 QUALITY IMPROVEMENTS IN 2000-2005 PERIOD
2000-01
2001-02
2002-03
2003-04
2004-05
1. Improve protection against the risk of cryptosporidium contamination by 2001/02
1
Proposed Price Limit (Water Service)
4.9
4.9
4.9
4.9
4.9
2. Alleviate low flows in the River Allen by 2002/03
2
Average Household Bill (today's prices)
108
113
120
127
133
3. Ongoing essential maintenance of all assets. 2000/01 – 2004/05
3
Average Household Bill paid
110
119
129
140
151
4. Install 9000 meters per year to manage peak demand and resource enhancement   2000/01– 2004/05
1
Proposed Price Limit (Sewerage Service)
-
-
-
-
-
5.  Longham Lakes Scheme. FIRST LAKE 2001/02
2
Average Household Bill (today's prices)
-
-
-
-
-
6. Link main to Christchurch. 2003/04
3
Average Household Bill paid
-
-
-
-
-
7. Reduce properties at risk of low pressure to 0.25% 2000/01-2004/05


PROJECTED EXPENDITURE NEEDS
Annual average for the AMP3 period (£/property/annum)
 

WHAT IS DRIVING THE CHANGES IN BILLS
 

£
1
Total Operating Expenditure - annual average
71.97
Average household bill in 1999-2000
102
2
Total Capital Maintenance Expenditure - annual average
31.12
Less

-

(1) passing on past out-performance
3
3
Total Capital Enhancement Expenditure - annual average
37.37
(2) challenging targets for future efficiency improvements
5
Plus

-

-

(3) the impact of improvements in water quality
5
RETURN CAPITAL
Annual average for the AMP3 period
(4) improvements in service performance
19
1
Return on capital - (post tax) (%)
6.7
(5) Maintaining security of supplies to all customers
15
Average household bill in 2004-2005
133



For further information contact R. I. Harrington Technical Director on 01202 591111



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