26th Nov 2009 12:55
Ofwat publishes Final Determination
Severn Trent Water confirms that it has received Ofwat's Final Determination for the period 2010 to 2015 ("AMP5").
Tony Wray, Chief Executive, said: "The Final Determination is a complex document with a huge volume of data and information to analyse and consider. We will take the time necessary to fully analyse the document before responding to our stakeholders."
The Final Determination contains Ofwat's decisions on the Final Business Plans submitted by all water companies in April 2009, and follows consultation on the Draft Determinations which Ofwat published in July 2009.
The Ofwat Final Determination includes the following for Severn Trent Water:
* An AMP5 capital investment programme of 2.45 billion (net of efficiencies, grants and contributions at 2007/08 prices) compared to 2.2 billion in the Draft Determination; * A cost of capital of 4.5% real, post tax. The component parts of the assumed cost of capital are; real post tax cost of equity of 7.1%, real post tax cost of debt of 2.6% and 57.5% gearing. This is unchanged from the Draft Determination; * A fall in average household bills of 4% in real terms (annual average fall of 0.9%) by 2015, compared to a fall of 8% (annual average of 1.5%) in the Draft Determination; * Annual average operating expenditure of 497 million compared to 469 million in the Draft Determination. The Final Determination document can be found on Ofwat's website www.ofwat.gov.ukEnquiries:John Crosse Andrew Marsh Mal Patel / Peter Hewer
Head of Investor Relations Public Affairs Manager Tulchan Communications Severn Trent Plc Severn Trent Plc 0207 353 4200 0121 722 4523 0121 722 4555
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