24th May 2023 14:16
(Alliance News) - Severn Trent PLC has admitted that the water sector should have acted faster to tackle sewage spills as it anticipated the "biggest investment period the sector has ever seen".
The remarks came as the water supplier revealed an increase in its profit and turnover and plans to boost capital investment by up to GBP1 billion.
Severn Trent said it was leading on environmental change having hit 100% of its performance pledges.
"However, as a sector, we recognise that we should have given sewage activations much more attention and acted faster, and we want to be a driving force for positive change", the company said.
It made improvements across its leakage performance, water quality complaints, and persistent low pressure and pollutions, but said external sewer flooding is a "key focus area".
The company, which provides water services in England and Wales, has been among the water giants coming under fire for failing to effectively tackle spills in rivers and beaches.
It contributed to "monster" sewage dumps in England's rivers and seas last year, spilling more than 6,600 hours worth of sewage into a brook in Rutland, according to the Liberal Democrats' analysis of Environment Agency data last month.
Suppliers are under pressure to modernise the Victorian-era sewage networks.
Severn Trent said it had significantly reduced sewage spillages and was investing billions in its region to improve water and waste services.
"We are expecting the biggest investment period the sector has ever seen, with a focus on water resources, improving environmental standards and on net zero, and we feel more than ready for this exciting opportunity ahead of us", Chief Executive Liv Garfield said.
Capital investment could reach between GBP850 million and GBP1 billion over the next financial year, according to the firm's guidance.
It also said it had ramped up financial support for customers, amid plans to help support 100,000 people out of poverty by 2032.
The FTSE 100-listed firm reported a profit before tax and interest of GBP509 million for the year to the end of March, and an 11% boost in turnover to GBP2.2 billion.
The improved financial performance came despite facing extreme weather conditions and rocketing energy prices, Garfield said.
She said: "This year has been a true test of water resilience for the sector, with some of the hottest and driest months ever experienced over the summer, followed by a sharp cold snap and rapid thaw over the winter."
Yet the supplier has kept water flowing and not enforced a hosepipe ban for nearly 30 years, she added.
Severn Trent shares fell 1.7% to 2,750.00 pence each on Wednesday afternoon in London.
By Anna Wise, PA Business Reporter
Press Association: Finance
source: PA
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