If approved by the Water Industry Commission for Scotland, this will allow the company to provide water and sewerage services to non-domestic customers north of the border.
The firm’s interim management statement said STS expected to deliver better performance in the second half than the first, but no significant upturn before the next financial year.
The group, which also holds Severn Trent Water (STW), completed a £250 million 30-year bond last month, at a coupon of 4.875 per cent.
STW reported operating expenditure in line with the board’s expectations and below the level permitted by Ofwat in its price determination.
It said net capital expenditure was likely to be between £450 million and £470 million, not including costs associated with the adoption of private sewers in October.
The private sewer transfer workload, it said, was at the lower end of the initial range of expectations.
The company maintained it did not plan to introduce usage restrictions this year and is working to improve supply resilience.
The full statement can be found here: http://bit.ly/z8y1Br