Financial

We use a wide variety of other information to assess risks to customers – and decide whether we need to take action on your behalf. This is part of our approach for holding water companies to account.

Below we highlight the overall performance of the monopoly water and sewerage and water only companies in England and Wales in 2014-15 – and any action we are taking to protect customers’ interests.

Financial indicators

It is important that companies are financially sustainable so they can continue to deliver services to customers. It is also important that we check they are making the investment in services they promised they would deliver.

We summarise companies’ financial performance in 2014-15 below.

  • Companies charges to customers (‘revenue’) totalled £11.8 billion. In real terms – after inflation is removed – revenue remained broadly constant from 2013-14, which is in line with the price limits we set.
  • Companies invested about £4.9 billion in 2014-15, compared to £5bn  in 2013-14. Most companies reported they had delivered their obligations for the price setting period 2014-15.
  • The financial returns that companies paid to providers of finance (measured as dividends and interest as a proportion of companies’ regulatory capital value) increased from 5.8% to 6.0%. The regulatory capital value is our valuation of the capital base of the companies.

The companies have now invested about £122 billion in services since privatisation.

You can also read your company’s regulatory accounts to find out more about their performance.

Find out more about why water companies need to make profits.

Our glossary of terms can help you understand what some of the financial terms mean.

Action we are taking

No companies have identified any problems in this area

Data

We have collated below the performance data companies have published.

Return on regulatory capital valueCredit ratingGearingInterest cover
Anglian4.6%Baa179.2%1.9
Dŵr Cymru4.7%A3/A/A60.0%1.9
Northumbrian7.0%BBB+/Baa166.7%1.6
Severn Trent5.6%BBB+60.7%3.9
South West5.1%62.0%2.6
Southern4.7%Baa278.0%1.6
Thames4.8%Baa180.1%2.0
United Utilities5.1%BBB+63.4%2.4
Wessex6.3%A3/A-/BBB+62.0%4.0
Yorkshire5.1%Baa277.2%1.5
Affinity Water6.4%A-/A380.0%2.0
Bournemouth6.3%58.4%3.5
South East5.4%BBB/Baa281.7%3.7
Bristol5.4%Baa1*72.6%2.4
Dee Valley5.2%69.0%3.0
Portsmouth4.5%80.0%1.9
Bournemouth6.3%58.4%3.5
South East5.4%BBB/Baa281.7%3.7
South StaffordshireSouth Staffordshire area5.8%BBB+/Baa2

63.3%

3.4

Cambridge area8.2%
Sutton & East Surrey6.0%BBB78.0%1.1