Business
PR19 Update for ST Water and Hafren Dyfrdwy
PR19 Update for ST Water and Hafren Dyfrdwy.
About this update from Severn Trent Plc
[{"type":"text","content":"\n \nRNS Number : 9633F Severn Trent PLC 18 July 2019 \n\n \nLEI: 213800RPBXRETY4A4C59\nSevern Trent Plc\n \nPR19 Update for Severn Trent Water and Hafren Dyfrdwy\n \n \nOfwat has today published new information on its PR19 assessments including its Draft Determination for our Welsh business, Hafren Dyfrdwy. \n \nIn respect of Severn Trent Water, we are pleased Ofwat has acknowledged our Totex representations in this publication, increasing our allowed cost base by £100m for the next 5 years and indicating further dialogue will continue over the coming months on remaining items. \n \nWe welcome the positive adjustments Ofwat has made to the glidepaths for two of the AMP7 ODI targets, Supply Interruptions and CRI - both of which we elected to keep open until this point. We will continue our preparations to ensure a positive start to AMP7 on the measures we know matter most to our customers.\n \nOur revised Hafren Dyfrdwy plan was well received by Ofwat and a reduced cost sharing rate is unlikely to be applied. Our Totex allowance will benefit from a small increase, based on our efficient cost base submission. \n \nWe consider that the reduction Ofwat has made to the WACC is significant for the sector and we would like to have seen a final position by this stage in the process. We will review the decision carefully in the context of our own plan, and look forward to further engagement with Ofwat on this issue in due course.\n \nWe believe the combined impact of positive changes in Totex and the latest adjustments to the WACC leaves us in a net neutral position over AMP7 when compared to the fast track draft determination we received in April 2019.\n \n \n \nEnquiries\n \nInvestors & Analysts\n\n\n\n\nRichard Eadie\n\n\nSevern Trent Plc\n\n\n+44 (0) 7889 806578\n\n\n\n\nHead of Investor Relations\n\n\n \n\n\n \n\n\n\n\n \n\n\n \n\n\n \n\n\n\n\nRachel Martin\n\n\nSevern Trent Plc\n\n\n+44 (0) 7824 624011\n\n\n\n\nInvestor Relations Manager\n\n\n \n\n\n \n\n\n\n\n \nMedia\n\n\n\n\nPress Office\n\n\nSevern Trent Plc\n\n\n+44 (0) 247 771 5640\n\n\n\n\n \n\n\n \n\n\n \n\n\n\n\nJonathan Siburn\n\n\nTulchan Communications\n\n\n+44 (0) 207 353 4200\n\n\n\n\n \n \n \nCautionary stat...