Households choosing meters drains Dee Valley

Nov 29 2008 by Aled Blake, Western Mail

UTILITIES company Dee Valley yesterday blamed rising fuel costs in the last year for a fall in profits.

The North Wales water supplier saw pre-tax profits in the year to the end of September fall 13.6% lower than the same period the previous year.

Dee Valley said that its revenue was up 5.1% on last year, although this increase was lower than the average increase in charges of 9.3%.

It said the difference was due to lower demand from non-household customers as a result of the weakening economic climate as well as the effect of household customers switching from unmeasured to measured charging.

The company, which has its headquarters in Wrexham, also revealed that operating costs were £160,000 higher than the equivalent inflation-adjusted costs last year because of an increase in power costs and costs associated with the preparation of the water company’s business plan.

In a statement to the Stock Exchange, the company said: “Although the group remains vulnerable to further reductions in measured income during the current year, the board believes that these uncertainties have been sufficiently factored into current market expectations.

“Apart from the issue of lower demand, the board considers that the year-end results will not be noticeably affected to any major extent by current global economic issues.”

Dee Valley also announced that its managing director, Bryn Bellis, will retire at the end of 2009 after 42 years with the company. Planning and regulation manager Norman Holladay will succeed Mr Bellis as managing director with effect from December 1, 2009.

The company said it had chosen to make an early announcement to allow for “an orderly hand-over.”