8 July 2026

Ofwat concludes wastewater investigation into Severn Trent Water

Today, as part of its sector-wide wastewater investigation that launched in 2021, Ofwat has concluded that no financial penalty will be imposed on Severn Trent Water. This outcome reflects our response to the findings, which Ofwat acknowledges sets a standard expected from all companies.

We accept the breaches identified, and our proactive approach to investing in our wastewater assets prior to the opening of the enforcement case has been recognised. Ofwat also acknowledges our strong Board oversight as well as our operational controls.

We prioritised monitoring of our storm overflows over ten years ago during AMP6 and in 2023 committed to invest £450m by 2030 as part of our 'Spills Reduction Programme' to upgrade storm overflows and storage capacity across our network. By 2030, we expect to reduce average spills per storm overflow to below 14 per year and we have ambition to go further. With the impacts of climate change and population growth this will require continued investment in our wastewater assets which we remain committed to.

We have cooperated openly with Ofwat and have committed to forward looking undertakings to take the necessary steps to ensure future compliance.  

James Jesic, Chief Executive, Severn Trent Plc, said: 

 "We're delivering a significant storm overflow spills reduction programme and Ofwat has recognised this in today's decision.

''We accept Ofwat's findings relating to issues that we proactively identified and began addressing these before the enforcement case was opened. By monitoring and investing early to put things right, we are now seeing the benefits, including reducing average storm overflow spills by 41% in 2025.

"Our investment programme in spills reduction continues across our region at pace with the strength of our whole organisation and supply chain behind it. We still have work to do and remain absolutely focused on delivering further improvements for our customers and the environment.''

Cautionary statement regarding forward-looking statements

This document contains statements that are, or may be deemed to be, 'forward-looking statements' with respect to Severn Trent's financial condition, results of operations and business and certain of Severn Trent's plans and objectives with respect to these items.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'projects', 'potential', 'reasonably possible', 'targets', 'goal', 'estimates' or words with a similar meaning, and, in each case, their negative or other variations or comparable terminology. Any forward-looking statements in this document are based on Severn Trent's current expectations and, by their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.

Forward-looking statements are not guarantees of future performance and no assurances can be given that the forward-looking statements in this document will be realised. There are a number of factors, many of which are beyond Severn Trent's control, that could cause actual results, performance and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: the Principal Risks disclosed in our latest Annual Report and Accounts (which have not been updated since the date of its publication); changes in the economies and markets in which the Group operates; changes in the regulatory and competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; and changes in interest and exchange rates.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Severn Trent or any other member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. This document speaks as at the date of publication. Save as required by applicable laws and regulations, Severn Trent does not intend to update any forward-looking statements and does not undertake any obligation to do so. Past performance of securities of Severn Trent Plc cannot be relied upon as a guide to the future performance of securities of Severn Trent Plc.

Nothing in this document should be regarded as a profits forecast.

Certain information contained herein is based on management estimates and Severn Trent's own internal research. Management estimates have been made in good faith and represent the current beliefs of applicable members of Severn Trent's management. While those management members believe that such estimates and research are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice, and, by their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or implied) is given to any recipient of this document that such estimates are correct or complete.

This document is not an offer to sell, exchange or transfer any securities of Severn Trent Plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended).