1. Ken Hutchison Managing Director Scottish Water International
Serving
Delivering for Scotland 24/7
Putting customers first
Trusted
Managing Director
Scottish Water International
Held in trust Building resilient services for the future
Building Nations Symposium
26 October 2017

2. Water Insights
Scottish Water:
A Model for
New Zealand?

3. Our Vital Role
Our Journey
Our Performance
The Benefits of a national public utility

4. Our vital role over 5 million customers
over 1.3 billion litres of water every day
2.49 million households
152,000 business premises
244 water treatment works
more than 1800 waste water treatment works
over 30,000 miles of water pipes
£1.2 billion turnover
around 4,000 people

5. Customers & Communities
Scottish Water: our purpose
Customers & Communities
at the Heart

6. The
‘Scottish model’
of regulation

9. The Scottish Water Industry : A History Lesson

10. Scottish Water formation
~1900
>1,000
Community
Arrangements
>1,500 WTW
210 Water
Boards
800 WTW
1945
13 Regional
Boards +
CSWDB
700 WTW
1968
12 Regional
Authorities
600 WTW
1976
North, West and
East of Scotland
Water
Authorities
500 WTW
1996
Scottish Water
Formed
400 WTW
2002
2017
249 WTW

11. More recently Pre 1996 Then….. In 2002….. Scottish Water
Owned and operated by 12 municipalities across Scotland
Then…..
In 1996 merged into three regional water companies – NSWA, WSWA & ESWA
In 2002…..
Became single national Water Utility serving entire population of Scotland

12. Scottish Water: Primary Objectives
Scottish Water created by merger of three regional authorities
Reduce operating costs by 40%
Deliver £2.3 billion investment for £1.8 billion
Improve every performance measure including Customer Satisfaction

13. There was lots to do…

14. Headlines 2002

15. Value for Customers & credibility with stakeholders
The Journey
FOLLOWING
LEADING
Setting the
Frontier
Major
Cost
Gap
Closure
Improve
Asset
Performance
Closure of
performance gap
Innovation
& Service
Risk Management
Value for Customers & credibility with stakeholders
2002
2006
2010
2015
2040+
England & Wales
Scottish Water

16. The Regulation Journey
Confrontational
Parent /Child
Relationship
Woke up to Regulation Being Good
Customer
lead
‘Ethical’ regulation
Collaborative
Value for Customers & credibility with stakeholders
2002
2006
2010
2015
2040+
England & Wales
Scottish Water

17. SW’s transformation journey: 2015 – 2021+
Customer at the heart of Business
Becoming Intelligent
Move from Information to Insight
Cost
Programme
Shift from Asset risk to
Service risk management
Improving Resilience

18. Transformation: When you get it right

19. Our Performance

20. Scottish Water is run by 4 KPIs
OMD
£ PBIT 20

21. Business performance Water Quality Compliance
Environmental Pollution Incidents

22. Customer Satisfaction
72.0%
74.0%
76.0%
78.0%
80.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
500
1000
1500
2000
2500
3000
3500
4000
4500
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16*
Formal Complaints
Customer Satisfaction % (Old)
Customer Satisfaction (New)

23. Written complaints volumes per 10,000 connected properties 2015/16 vs 2016/17

24. Health and Safety

25. UK
Customer Service Index
Target
Utilities

26. Consistently achieve an OPA score above 390, 90% Customer Satisfaction
Summary Performance: Costs and service
Consistently achieve an OPA score above 390,
90% Customer Satisfaction
2017
2002
132 OPA Points
63% Customer Satisfaction
£480m OPEX
Service Improvement
Opex Cost
“High Cost & Low Quality Service”
“Low Cost & High Quality Service”
40% OPEX cost reduction 26

27. What was key to delivering these Improvements?

29. 2012 Utility Industry Awards Winner – Staff Development
2012 National CIPD People Management Awards
Winner – Organisational Learning
2015 Scottish Top Employers For Working Families

30. What are the benefits of a publically owned national utility?

31. A National Utility Drives :
Efficiency : Benchmarking
Focus on Water & Wastewater Service :Centres of excellence
Strategic approach to investment
Risk
Regional
resilience
Funding of larger schemes
Competence built everywhere

32. Shift requires: A driver for change
Bold Leadership
Political
Company
Effective regulation
Employee Engagement
Resilience to stay on the journey

33. THANK YOU!