Outcome performance history

In AMP6 (the five-year period from 2015 to 2020), we have delivered high levels of performance across the board on our Outcome Delivery Incentives (ODIs).

We have achieved this by making additional investments to exceed the stretching targets that were set at the start of the AMP period. We have improved on our industry-leading leakage performance from a level of 192 Ml/d in 2014/15 to our best ever single-year leakage performance of 182Ml/d in 2019/20. In Ofwat’s Service Incentive Mechanism (SIM) measure of customer experience, we maintained our strong track record of outstanding customer service and finished AMP6 in top position, scoring highest on the combined measure in the final ever year of this measure in 2018/19.


We have reduced the number of customers at risk of low pressure by more than 70 per cent from 505 in 2014/15 to 148 in 2019/20. Our score for interruptions to supply has almost halved, from a score of more than 19 minutes in AMP5 to an average of 10 minutes in AMP6, despite an event in Leighton Buzzard in 2019 that will see us returning more than £10 million to customers.


The required improvements in interruptions to supply could only be achieved with an additional investment of £17.9 million, which included mains connectivity schemes to enable water to be brought from alternative sources, installation of more than 100 devices to remotely reset pumps upgrading our network pressure monitor reporting system and developing a dedicated Restoration team to help maintain supplies during an event.


We have reduced the number of internally flooded properties by 38 per cent from 475 in 2014/15 to 296 (three year average) in 2019/20. This has earned us a reward of more than £10 million. And for externally flooded areas we have delivered a reduction of 41 per cent despite no reward being available for this ODI. This has seen the three-year average for the number of areas flooded reduce from 6,181 in 2014/15 to 3,631 (three-year average) in 2019/20.


The number of Category 3 pollution incidents attributed to our assets has also reduced from 390 in 2014/15 to an average of 204 in AMP6 — a 48 per cent reduction. This has earned us a combined reward of over £15 million for the whole of the period.


Water quality contacts have reduced by 22 per cent from 1.48 per 1,000 customers to 1.15 per 1,000 customers in the five years of AMP6, and the Drinking Water Inspectorate has assessed our Mean Zonal Compliance measure with drinking water standards to remain at 99.95 per cent or better for all five years as well.

 

We have delivered all 97 of our obligations to the Environment Agency under our Environmental Compliance ODIs and have avoided significant penalties for non-delivery of the associated schemes.


We have ended the AMP with 12 out of 13 Serviceability measures within the allowable limits, and in fact only three other measures were outside their limits on one occasion in the rest of the five-year period.


In 2019/20 we attracted a penalty for bathing water assessments as three of the bathing waters in our region were downgraded from ‘Excellent’ to ‘Good’ by the Environment Agency as a result of samples it took during heavy rainfall in June 2019 that caused flooding in parts of our region. The downgrading is currently the subject of judicial review at Anglian Water’s request. As a result, we missed our target of 33 ‘Excellent’ rated bathing waters by three, leading to a penalty of £13.3 million. A further penalty of £10.2 million has been attracted due to the interruption to water supply in Leighton Linslade, which caused our score for this measure to increase by 12 minutes and 40 seconds. Without this event the score would have been 5 minutes and 59 seconds, well below our target of 12 minutes. We have also missed our target on per property consumption, due to high water demand continuing after an exceptional year in 2018/19, caused by a dry summer and increased customer-side leaks as a result of the 2018 ‘Beast from the East’ cold weather event. While consumption has dropped by seven litres per property per day this year, we have still seen an increase of four litres per property per day over AMP6 and have therefore attracted a penalty of £9.2 million.


In the first four years of the AMP (with data for other companies not available at  present), we earned the second highest amount of reward for our performance with a projected £49.8 million. This was on the back of high performance in areas that Ofwat considers to be most important: SIM (customer service), leakage, interruptions to  supply, internal sewer flooding and pollution incidents. In Ofwat’s Service delivery report 2018—19, we were ranked as a top performer overall and top for both SIM and leakage. We also performed above average for supply interruptions and pollution incidents, as well as being in the top quarter for internal flooding and water quality contacts. We expect to earn another £9.5 million of reward this year, which has been partially offset by performance at bathing waters and due to the large supply interruption at Leighton Buzzard.

 

Find out more about our ODI performance payments here.

 

Outcome Delivery Incentive AMP6 performance history