17 April 2014
Severn Trent Water - Regulatory Update
Following on from the publication by Ofwat of company business plan assessments and ratings on 10 March and 4 April, Severn Trent Water has continued a constructive dialogue with Ofwat on its business plan for 2015-2020.
As noted in Ofwat's publication on 4 April, Ofwat requires more evidence on our submission and in particular on one element of wholesale water costs, namely the Birmingham strategic resilience project, which accounts for £255 million of totex (total expenditure) over the 5 years.
We need to ensure there is sufficient time and opportunity to fully engage with Ofwat on these evidence requests and on the case for the resilience project, including the importance that our customers place on this project, the support that our customer challenge group has provided and our assessment of the risks of not proceeding with the project. Consequently Severn Trent Water has decided to re-submit its plan to Ofwat on 27 June to receive an August draft determination, in line with the process outlined by Ofwat on 4 April.
We look forward to continuing our constructive and positive dialogue with Ofwat, our customer challenge group the Severn Trent Water Forum and other stakeholders over the coming weeks.
Enquiries:
Rob Salmon |
Severn Trent Plc |
0207 353 4200 (on the day) |
Head of Communications |
|
02477 715000 |
John Crosse |
Severn Trent Plc |
0207 353 4200 (on the day) |
Head of Investor Relations |
|
02477 715000 |
Martha Walsh / David Shriver |
Tulchan Communications |
0207 353 4200 |
Notes to Editors:
The Birmingham strategic resilience project is focused on the Elan Valley Aqueduct, which opened in 1906 and brings water from the Elan Valley reservoirs in Wales to Birmingham. The project will reinforce water supplies for Birmingham to minimise the possibility of future supply interruptions.
Forward-Looking Statements:
This document contains certain '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', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. 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 will occur in the future.
There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, 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. Severn Trent does not intend to update these forward looking statements.
Nothing in this document should be regarded as a profits forecast.
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).
