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South West Water and Severn Trent played down the impact of recent extreme weather on their financial performance, in interim management statements released on Friday.
Severn Trent said it anticipates “no material financial impact from the present floods”, while South West Water said: “Despite the exceptional weather and resultant flooding in the South West, the company continues to deliver effective operational performance and high standards of customer service, underpinned by strong financial performance.”
Both companies were upbeat, with Severn Trent announcing its performance remained in line with expectations and South West Water claiming it was “well placed” to outperform its assumptions.
According to Severn Trent’s statement, which covers the period October 1 2013 to February 13 2014, its operating costs are expected to rise year on year due to the impact of inflation and power costs but it estimates that this will be partially offset by efficiency improvements.
The company’s’ net capital expenditure is expected to be between £600 million and £620 million for the year. That includes an estimated £15 million related to the adoption of private drains and sewers.
The level of net infrastructure renewals expenditure included in this range is anticipated to be £135 million to £145 million.
Severn Trent and Pennon will announce their preliminary Results for 2013/14 in May and June respectively.
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