Monitoring financial resilience

Having information that is easy to understand and navigate allows customers, and other stakeholders to challenge companies’ performance – and encourages them to deliver better services. This helps everyone build trust and confidence in water.

All monopoly water-only and water and wastewater companies in England and Wales report their performance each year in an annual performance report. This is part of our approach to monitoring and assuring delivery.

2018-19 performance

We report information on company performance annually. This report is intended to enhance the visibility and accessibility of each company’s financial performance and the financial structures in the sector by sharing key metrics, rather than drawing any conclusions on the financial performance of any individual company. This enables Ofwat and other stakeholders (including investors and potential investors, ratings agencies, analysts, government and customers) to monitor the businesses which we regulate and to challenge the sector in its identification and management of risk.

While this report does not draw any conclusions on the financial performance or resilience of any individual companies, in line with our strategic goal to transform water companies’ performance, we continue to engage with companies directly where we have concerns about their financial or operational performance or where we see indicators of a risk to their financial resilience.

This report draws on information published by individual companies in their annual performance report for the year ended 31 March 2019 and other publicly available information (e.g. statutory accounts published by individual companies or reports from the credit rating agencies).

2017-18 performance

This report includes information on a new metric – ‘financial flows’. This is the first time that this information has been included and was run on a pilot basis for this year. The financial flows metric looks at the returns that a company’s equity holders achieve, in comparison to the assumed level in price limits that were set in 2014.

2016-17 performance

2015 – 2016 performance