3rd Feb 2016 07:27
LONDON (Alliance News) - Severn Trent PLC Wednesday increased its full-year guidance for the amount it will make from outcome delivery incentives and said the rest of the business remains on track to meet expectations.
The water and wastewater company serving the Midlands and Wales said the net reward from the outcome delivery incentives for the full year is now expected to be GBP15.0 million. Utility companies in the UK are issued penalties or rewards for meeting or failing to meet certain measures and targets.
The idea of the outcome delivery incentives is to encourage companies to deliver performance improvements.
"I am delighted to see all this hard work is translating into a net outcome delivery incentive benefit, at this stage, of GBP15.0 million for the full year," said Chief Executive Liv Garfield.
Other than that, Severn Trent confirmed that it continues to perform in line with expectations and there has been no material change to the technical guidance for the full year, the company said.
"Having locked in the savings set out in our final determination, we are working hard to identify further efficiencies, while continuously improving our services, and will provide a further update with our results in May," said Garfield.
"There remains much to do, but this year is shaping up to be a great start to the current regulatory period," she added.
Severn Trent will release its results for the financial year to end March 31 on May 24.
By Joshua Warner; [email protected]; @JoshAlliance
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