Financial 2013-14

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 2013-14 – 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 2013-14 below.

  • Companies charges to customers (‘revenue’) totalled £11.5 billion. In real terms – after inflation is removed – revenue was 1.6% higher than in 2012-13.
  • Companies invested about £5 billion in 2013-14, which was broadly the same as in 2012-13.
  • The financial returns that companies paid to providers of finance (measured as dividends and interest as a proportion of companies’ regulatory capital value) fell from 6.4% to 5.8%. 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.


We have collated below the performance data companies have published.


Return on regulatory capital value Credit rating Gearing Interest cover
Anglian 4.7% Baa1 79.6% 1.6
Dŵr Cymru 5.0% A3/A/A 63.1% 2.1
Northumbrian 5.3% BBB+/Baa1 61.1% 1.9
Northumbrian (Essex and Suffolk)
Severn Trent 6.4% BBB+ 58.6% 3.6
South West 5.4% 56.0% 2.4
Southern 5.2% Baa2 78.0% 1.6
Thames 4.9% Baa1 77.6% 1.8
United Utilities 4.7% BBB+ 61.4% 3.0
Wessex 5.9% A3/A-/BBB+ 64.0% 3.6
Yorkshire 4.3% Baa3 79.2% 1.4
Affinity Water 5.8% A-/A3 79.0% 1.4
 – Central area
 – East area
 – Southeast area
Bristol 3.9% Baa1 67.9% 2.7
Dee Valley 7.3% 77.2% 3.8
Portsmouth 4.4% 81.4% 1.6
Sembcorp Bournemouth 7.4% 59.7% 4.0
South East 6.4% BBB/Baa2 81.0% 3.7
South Staffs (Cambridge) 7.3% BBB+/Baa2 64.4% 3.3
South Staffs 5.8% BBB+/Baa2 64.4% 3.3
Sutton & East Surrey 5.8% BBB 77.0% 1.2