TENDRING HUNDRED WATER SERVICES LTD A summary of our Business Plan Submission to Ofwat - April 1999

OVERALL STRATEGY FOR THE AMP3 PERIOD AND TOP 5 STRATEGIC OBJECTIVES 1. To meet current known statutory obligations 2. To maintain assets and pursue policies to achieve optimum serviceability and sustainability in a prudent and sensible way. 3. To effectively manage and utilise existing licensed resources (using leakage control, customer education, metering, tariff development etc.), and to respect the environment and wherever possible reduce our impact on it. 4. To meet customers' expectations for levels and standards of service by being efficient, using best practice methods, offering good value for money services and to provide information for customers to assist their understanding and general support of our activities, aims and objectives. 5. To act at all times in the best, overall interests of customers, employees and shareholders

PROPOSED PRICE LIMITS & EFFECT ON AVERAGE BILLS								TOP 5 QUALITY IMPROVEMENTS IN 2000-2005 PERIOD
		2000 -01	2001- 02	2002 -03	2003- 04	2004- 05		1. Completion of Section 19 Distribution Undertaking works.
	Proposed Price Limit for water and sewerage services							2. Provision of free meter option scheme
1	Proposed Price Limit (Water Service)							3. Improve security of supply to Brightlingsea
2	Average Household Bill (today's prices)	153	157	160	158	159		4. Improve security of supply to St Osyth and Clacton on Sea
3	Average Household Bill paid	157	165	172	175	180		5. Improve reliability of output from Ardleigh WTW
1	Proposed Price Limit (Sewerage Service)
2	Average Household Bill (today's prices)
3	Average Household Bill paid

 

PROJECTED EXPENDITURE NEEDS				Annual average for the AMP3 period (£/property/annum)			WHAT IS DRIVING THE CHANGES IN BILLS		£
1	Total Operating Expenditure - annual average			71.59			Average household bill in 1999-2000		147
2	Total Capital Maintenance Expenditure - annual average			31.02			Less	(1) passing on past out-performance
3	Total Capital Enhancement Expenditure - annual average			29.21			Plus	(2) challenging targets for future efficiency improvements
								(3) the impact of improvements in water quality
RETURN CAPITAL								(4) improvements in service performance
Return on capital - (post tax) (%)				7.97 %				(5) Maintaining security of supplies to all customers
								Average household bill in 2004-2005	159

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