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Last Updated: Friday, 9 June 2006, 13:43 GMT 14:43 UK
Water company records 11m profit
Running water
Glas Cymru has owned and operated Welsh Water since 2001
The company which owns Dwr Cymru/Welsh Water - Glas Cymru - has announced a pre-tax profit of 11m for the last financial year.

The not-for-profit firm, set up five years ago, has no shareholders and will reinvest in the business.

Customers will also each receive a 19 "dividend" in a deduction from bills.

It comes as the chairman of the Scottish water watchdog hinted that the Glas Cymru model might be something that could be adopted in Scotland.

Glas Cymru serves about 2.9m people across a geographical area covering most of Wales.

I don't know whether this would work in Scotland or indeed elsewhere, but it seems to have worked so far in Wales
Chris Jones, Glas Cymru

Its results for the year to 31 March 2006 showed a pre-tax profit of 11m, compared with the 4m profit returned in 2005.

The company said that its "strong financial performance" meant customers would receive an increased "customer dividend" this year of 19.

Finance director Chris Jones said: "We are a private water company like the water plcs but the difference for us is that we are not actually owned by shareholders.

"It means that the profits we make are all retained in the business and that's what enables us to provide benefits to customers like this year a dividend of 19.

"What we've demonstrated that a not-for-profit private company can raise significant amounts of money and do so on favourable terms."

'Exceeded expectations'

Earlier this week, Sir Ian Byatt, the chairman of the Water Industry Commission for Scotland, suggested in an interview with The Scotsman that Scottish Water could follow the Glas Cymru model and set up as a not-for-profit body or as a cooperative.

But Mr Jones said it may not be suited for conditions elsewhere.

He added: "I don't know whether this would work in Scotland or indeed elsewhere, but it seems to have worked so far in Wales."

Glas Cymru chairman Lord Burns said the company's financial performance had "exceeded our expectations".

He added: "It is now just over five years since Glas Cymru became responsible for Welsh Water.

"Much has been achieved in that period, but we and our partners remain committed to delivering further improvements in value for money to our customers in the years ahead."


SEE ALSO:
Dwr Cymru Welsh Water
18 May 06 |  Wales
Water firm defends bill rise
10 Jun 04 |  Wales
Water bills may rise 16%
07 May 04 |  Wales
Water back on for 10,000 homes
18 Oct 03 |  North East Wales
Works 'killing' business claim
09 Mar 04 |  North East Wales


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