The dry weather seen in the summer cost Severn Trent an additional £10.1 million in the first half of the year to help meet a 22 per cent increase in demand.
In its half-year results to 30 September 2018, the company said it expects to spend the same amount over the following six months to “support the operational recovery from the event”.
Turnover for the regulated water and wastewater segment of Severn Trent was £822.5 million – compared with £789.9 million during the same period in 2017/18, and underlying profit before tax was £279.2 million – up marginally from £278.3 million.
The company said it had achieved an upper quartile position in the UK Customer Service Index for utility companies.
It also said its ODIs were in line with expectations, with AMP6 performance of £150 million to date.
Severn Trent chief executive Liv Garfield said the company wants to make a “fundamental difference in society and in the communities it serves”. “As such, we’re delighted to be one of a handful of companies, and the only utility, to be acknowledged as a pathfinder company by the Purposeful Company organisation and we look forward to developing our approach to this further in the future.”
She added that the company is “on track” for its biggest year of capital spend in a decade, with more than £300 million invested in the first six months to improve performance for its customers today and for generations to come. “Building a lasting legacy is a key priority for us and we believe our PR19 plans will deliver what our customers have asked for, while maintaining the right balance of affordability and future investment.”