Wessex water has revealed its pre-tax profits dropped £12.2 million in the financial year 2015-16.
The water supplier also revealed that turnover decreased by nearly £20 million from £540.3 million to £520.8 million. Operating profit has dropped as a result of a £2 billion programme of work for major water and sewerage improvements. However, customer bills have dropped by five per cent since April 2015.
The programme which is currently underway includes a £39 million scheme to improve bathing water quality in the Burnham-on-Sea area to meet tighter standards. A new water supply grid is also being built and is due to be completed in 2017.
Wessex Water chief executive Colin Skellett said: “2015/16 was the first year of a new five-year price control. Our focus is on delivering the outcomes our customers and local communities want.
“We have made an excellent start and performed well against our commitments, achieving industry-leading customer service and environmental performance.”
As part of the supplier’s five-year investment plan, the Wessex Water Partnership has been formed, independently chaired by former water minister Dan Rogerson, the partnership will provide advice and guidance on customer engagement, service, affordability and tariffs.
Earlier this year the company announced a joint venture with Albion Water, taking a 51 per cent stake in the independent supplier.