Ofwat publishes Final Determination
Severn Trent Water confirms that it has received Ofwat's Final Determination
for the period 2010 to 2015 ("AMP5").
Tony Wray, Chief Executive, said: "The Final Determination is a complex
document with a huge volume of data and information to analyse and consider. We
will take the time necessary to fully analyse the document before responding to
our stakeholders."
The Final Determination contains Ofwat's decisions on the Final Business Plans
submitted by all water companies in April 2009, and follows consultation on the
Draft Determinations which Ofwat published in July 2009.
The Ofwat Final Determination includes the following for Severn Trent Water:
* An AMP5 capital investment programme of £2.45 billion (net of efficiencies,
grants and contributions at 2007/08 prices) compared to £2.2 billion in the
Draft Determination;
* A cost of capital of 4.5% real, post tax. The component parts of the
assumed cost of capital are; real post tax cost of equity of 7.1%, real
post tax cost of debt of 2.6% and 57.5% gearing. This is unchanged from the
Draft Determination;
* A fall in average household bills of 4% in real terms (annual average fall
of 0.9%) by 2015, compared to a fall of 8% (annual average of 1.5%) in the
Draft Determination;
* Annual average operating expenditure of £497 million compared to £469
million in the Draft Determination.
The Final Determination document can be found on Ofwat's website
www.ofwat.gov.uk
Enquiries:
John Crosse Andrew Marsh Mal Patel / Peter Hewer
Head of Investor Relations Public Affairs Manager Tulchan Communications
Severn Trent Plc Severn Trent Plc 0207 353 4200
0121 722 4523 0121 722 4555
END
SEVERN TRENT PLC
© 2009 PR Newswire
