Severn Trent's Wray: we offer good value

SINCE taking up his position more than two years ago, Severn Trent chief executive Tony Wray has managed to turn its fortunes around, reducing customer complaints and improving the firm's response to leaks.

But to continue this progress, Mr Wray has previously said bills would need to go up.

Earlier this month, in an exclusive interview with the Derby Telegraph, he explained why.

He said: "We find ourselves in a very challenging economic climate – not just for businesses but also householders. But at the moment, the average charge for water is 84p a day.

"When you look at how the cost of other utilities like gas and electricity has gone up recently, I believe we still offer very good value for money."

In the same interview, Mr Wray also defended the company's profits.

He said: "What people might not appreciate is that for every £2 we make in profit £3 is re-invested in the company. We work on a cash-negative basis and I can't think of many businesses who do that. In the water business we have to look five, 10, maybe 20 years ahead.

"We will continue to invest but the level depends on Ofwat's final decision on water bills. Only then will we know how much we will have to spend on improvements."