23rd Jul 2009 07:09
23 July 2009
PENNON GROUP PLC
DRAFT DETERMINATION FOR SOUTH WEST WATER
The Water Services Regulatory Authority (Ofwat) has this morning published its Draft Determination in respect of the K5 period (2010 - 2015). The key elements for South West Water include:
A cost of capital for the industry of 4.5% (real, post tax basis and equivalent to 5.1% vanilla)
'K' price increases averaging 0.9% per annum over the five years
A capital programme of around £640m at 2007/08 prices
A Capital Incentive Scheme (CIS) score of 110 (water) and 116 (sewerage)
Base operating efficiency improvements per annum of 3.1% (water) and 1.8% (sewerage)
South West Water is now reviewing the package proposed by Ofwat and will be making representations to the industry regulator over the next few months. Ofwat will announce its Final Determination for the sector on Thursday 26 November.
Further information on Pennon and South West Water can be found on the Group's website, www.pennon-group.co.uk
For further information, please contact:
Pennon:
David Dupont - Group Director of Finance 01392 443998
Jo Finely - Investor Relations Manager 01392 443401
Finsbury:
Sally Hogan 0207 251 3801
23 July 2009
www.pennon-group.co.uk
End transmission
Related Shares:
Pennon