South West Water has the highest potential rewards in the sector for K6. At 31 March 2016 the combined water business (South West Water and Bournemouth Water) has delivered an 11.7% Return on Regulated Equity (RoRE)(1) arising from base, operational and financing returns.
South West Water is striving for ever greater efficiency in K6, building on a strong track record from K5. The company was deemed to be at the frontier of cost efficiency when it was awarded an enhanced Business Plan assessment with the largest element of potential operational outperformance over K6 coming from total expenditure (Totex) savings and efficiencies. Bournemouth Water is one of the top performing water-only companies and was deemed to be mid-table for efficiency. The combined water business is 'front-end-loading' ef ciencies and savings to allow early and more certain delivery of outperformance. £56m of Totex savings(3) have been delivered in 2015/16, despite costs of delivering growth. These Totex savings re ect changes in the timing of delivery from those planned in the determinations.Read about our water and wastewater business (PDF)