SVT cuts sewer blockages and flooding by almost one-third

Severn Trent (SVT) has reduced sewer blockages by 30 per cent and driven down sewer flooding by 31 per cent year-on-year for 2020/21.

In its financial results for the 12 months to the end of March, the company said it secured net rewards of £79 million from outcome delivery incentives (ODIs) after achieving positive results across four-fifths of measures.

SVT reported its gross greenhouse gas emissions have reduced by more than 50 per cent compared to the previous year, in accordance with the Greenhouse Gas Protocol Scope 2 guidance. This was aided by meeting 53 per cent of its energy demand using self-generated renewable energy.

Group turnover was down 0.9 per cent to £1,827 million, with c.£50 million net impact of lower consumption due to Covid-19 lockdowns, which the regulatory model will allow SVT to recover later in the asset management period.

SVT announced its intention to raise around £250 million through an equity placing by issuing new ordinary shares, the proceeds of which will be used to fund the green recovery projects announced earlier this week by Ofwat.

The company, which this week announced the creation of 2,500 new jobs under its green recovery programme, installed 80,000 water meters to help customers use water efficiently and to better manage leakage.

Liv Garfield, chief executive, said: “Despite a tough year, we’ve made the most of achieving fast-track status and have taken a number of great steps forward. Our sector-leading ODI performance is proof of our commitment to working smarter – whether by finding simple, cost-effective solutions or by introducing industry-leading innovations – across our key performance areas. We’ve supported our customers and our communities during the pandemic and will continue to do so. Combined with our environmental commitments, we believe we’re leaving a real lasting legacy for generations to come.”