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Severn Trent has proposed to reduce its bills by an extra 0.3 per cent to 1.5 per cent in real terms over the five year period from 2015-2020.
In its revised business plan, submitted today, the water company also agreed to adhere to Ofwat’s proposed overall average cost of capital (WACC) of 3.85 per cent.
Severn Trent says customers will benefit from improved resilience and better services, with bill rises over 2015-2020 kept to an equivalent of 1.5 per cent below inflation. Severn Trent customers currently face the lowest bills in England and Wales and are £60 below the industry average.
The water firm is planning to spend a total of £6.2 billion in the next AMP cycle, with capital investment amounting to £3.3 billion.
Liv Garfield, chief executive of Severn Trent, said: “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.
“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.”
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