Representatives, Lester Sonden, Stuart Hyslop and Anthony Ferrar, from Sutton and East Surrey Water provided a presentation to the Panel on the business, services provided, customer base, priorities and objectives, draft Business plan and resources (see attached presentation).

Lester Sonden and Anthony Ferrar sought the Panels views on the objectives within the Draft Business Plan and the proposed increase in charges of £7 per household per annum by 2020

Councillor John Sargeant asked about the scale of the consultation undertaken and if the £20 million investment would result in loss of profit in the long term. Anthony Ferrar explained that consultation had been undertaken with 600 domestic and 200 business customers. This involved a group that was representative of the socio- economic make up of the area and the outcomes of this consultation will shape the business plan. The proposals made in the business plan will also be subject to scrutiny by an external regulator.  Anthony Ferrar added that a reasonable predictable return was expected.

Councillor Phillip Jones asked about security of supply and if the percentage of the supply coming from ground sources was sustainable. Lester Sonden explained that large additional resources couldn’t be developed in this area but that the company was building greater resilience so additional water could be pumped into the northern part of its supply area from the southern part if required. At present the company does not have any concerns regarding water resources. Also a long term plan for sustainability is in place.

Councillor Dennis Pearce asked about lining improvements to pipes. Lester Sonden confirmed that this is not used.

Councillor Ray Tindle asked about water poverty. Anthony Ferrar explained that a social tariff was proposed given that water poverty is increasing; however, at present the company did not have a large number of customers who could not pay their bill. Under the scheme bills would reduce by 50% for those who were eligible. Subsidies would be made available to customers, linked to an assessment against eligibility criteria.

Councillor Phillip Jones enquired if any work had been undertaken to determine who may be affected and how they could be targeted. Anthony Ferrar said some initial work had been undertaken but more would have to be done if the proposal is implemented.

Lester Sonden explained that long term, it was proposed to introduce a compulsory metering programme. Currently, the company is metering domestic properties on change of occupancy. 

Councillor David Dean enquired about smart meters. Lester Sonden explained that smart meters were helpful to detect leakage and so prohibit potential for higher bills because issues have not been identified. A form of smart metering is being trialled by the company.

Councillor Ray Tindle enquired about potential threats to the operation of the water works sites and what plans were in place to mitigate this risk. Lester Sonden explained that risk management plans were in place and that CCTV was in operation on the sites.

Anthony Ferrar asked if Members supported the proposals. The Panel agreed that there was a need to protect the vulnerable, consider more effective use of meters and ensure that there was a commitment to the planned improvements in the business plan.

RESOLVED:  Panel noted the presentation.