Business
Severn Trent Water submits revised business plan
Severn Trent Water submits revised business plan.
About this update from Severn Trent Plc
[{"type":"text","content":"\n \nRNS Number : 7571K Severn Trent PLC 27 June 2014 \n \n\n27 June 2014\n \nSevern Trent Water submits revised business plan for the period 2015 - 2020\n \nSevern Trent Plc confirms that its wholly owned subsidiary Severn Trent Water has submitted as planned its revised Final Business Plan (the \"Plan\") to the regulator Ofwat for the next five year regulatory period AMP6, which runs from April 2015 - March 2020.\n \nHighlights\n· Average customer bills to decrease by a further 0.3% to 1.5% in real terms over the five year period - lowest combined average bill in England and Wales\n· Plan based on Ofwat's weighted average cost of capital guidance\n· Total expenditure of £6.2bn, including capex of £3.3bn\n· Nominal RCV expected to be c.£10.1bn by 2020\n \nCommenting on the Plan, Liv Garfield, Chief Executive Severn Trent Plc, said: \n \n\"We have continued a constructive engagement with Ofwat and other stakeholders in the last few months to revise our Plan. We are focused on delivering what customers want and the environment needs, while keeping prices down. Customers will benefit from improved resilience and better services, with bill rises over 2015-2020 kept to an equivalent of 1.5% below inflation. Severn Trent already has the lowest combined average bill in England and Wales, currently £60 below the industry average, which will be frozen for next year. We have sought to strike the right balance between the service customers receive, the bills they pay, and returns to investors. We believe our Plan is fair and balanced whilst delivering better services, better value and a healthier environment.\"\n \nThe Plan reflects guidance given by Ofwat in January on risk and reward and the constructive dialogue Severn Trent Water has had with Ofwat to address evidence requests highlighted in the risk based review published in April. These included the Birmingham resilience project, legacy adjustments and outcome delivery incentives (ODIs). We have submitted the required information in response to all the evidence requests made by Ofwat. We have also had a positive engagement with other stakeholders and support from the Water Forum, our customer challenge group. \n \nThe key elements of the plan that change since first ...