26th Nov 2009 10:58
26 NOVEMBER 2009
PENNON GROUP PLC
FINAL DETERMINATION FOR SOUTH WEST WATER
The Water Services Regulatory Authority (Ofwat) has this morning published its Final 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 (above RPI inflation) averaging 1.9% per annum over the five years
A capital programme of around £670m at 2007/08 prices (net of grants and contributions)
A Capital Incentive Scheme (CIS) score of 105 (water) and 110 (sewerage)
Base operating efficiency improvements of 1.7% per annum
South West Water is now reviewing the package proposed by Ofwat and has until the end of January 2010 to respond.
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
26 November 2009
www.pennon-group.co.uk
End transmission
Related Shares:
Pennon