Economic sustainability
Asset Management
Targeted, efficient capital expenditure, forms an essential part of the delivery of the Company's long-term strategies. South West Water has the highest asset value per customer of any of the water and sewerage companies, and it faces considerable challenges to sustain the reliability of its assets as they age, and to improve the robustness of asset performance where necessary.
The capital plan in place for the K5 period represents the Company's view of its investment needs in the context of its longer term strategic aims, whilst mindful of our customers' strong desire for stable prices during K5.
The development of the plan utilised a number of supporting methodologies and tools, including:
- analysing data within our source systems to identify asset performance and deterioration issues
- considering the whole life cost analysis of operating our assets
- sewerage system studies and network modelling
- investment plans to take into account the impact of our activites on customers and the environment
- an approach to the management of small waste water catchments developed in partnership with Exeter University.
The aims of our Asset Management Policy are directed towards both maintaining asset serviceability and delivering the optimum service to our customers as described in our Strategic Direction Statement.
Major capital investments in the year included construction of the Exeter water treatment works flood defence scheme, infrastructure works connecting Stannon Lake (the Company's fourth largest reservoir) into the distribution network, and maintenance expenditure focused on maintaining near perfect tap water quality.