Guernsey Water aims to end flow of losses

But there are plans in place to bring the utility back into the black.

Board chairman Dr Simon Thornton said the financial position was not sustainable with a capital investment programme needing to be funded.

‘The management team are working on ways to restore the business to surplus so it can continue to deliver a high-quality service to its customers at as low a price as possible,’ he said.

‘We plan to return to surplus in 2025.’

The utility raised prices by 6.9% for water charges and 7.5% for waste water charges last year.

This was when inflation was 8.5% and the increase was lower than planned, as the utility was conscious of the cost-of-living pressures on households.

‘The resulting reduction in planned revenue was compounded by reduced demand, particularly during the summer,’ said Guernsey Water managing director Steve Langlois.

‘The effect of ongoing inflationary pressures on expenditure overtook price increases.’

Operating margins declined, and, despite making savings through how wastewater services are outsourced, this did not offset cost increases elsewhere.

Mr Langlois confirmed there was a recovery plan in place, to return the utility to surplus in 2025.

This includes reviewing outsourced services and bringing them in-house, if that was more efficient.

The island has more than 100 miles of water pipes and 58 pumping stations.

Mr Langlois said much of the infrastructure operated in a harsh environment and investment was needed to maintain it at current levels. Last year £5.9m. was spent on renewing and improving services.

Drinking water and wastewater is delivered at £1.25 a day for the average metered customer and Mr Langlois said Water was committed to balancing costs to customers against providing a resilient service.

Leakages were equal to 66 litres per property per day in 2023. This compared to the England and Wales average of 113 litres, but was up on the 52 litres recorded in Guernsey in 2022.