Severn Trent is “encouraged by the opportunities” of higher financial returns for ambitious and innovative companies in PR19.
In a trading update for the period to 19 July 2017, the company said that, as expected, PR19 “looks set to be a challenging review”.
It said it is making “good progress” on its business plan for AMP7, which will be submitted to Ofwat in September 2018.
Severn Trent has made a “good start” towards delivering its target net reward for 2017/18 customer outcome delivery incentive (ODI) outperformance of around £23 million, whilst also continuing to work towards delivering totex efficiencies of £770 million in AMP6.
The update stated that, following the successful acquisition of Dee Valley in February 2017, integration of the business is “progressing well”.
And the group is “encouraged by the ongoing progress” of its Water Plus joint venture, which its claimed has “strongly positioned itself” in the new non-household water market. Water Plus has, so far, won “a number of large multi-site customers” such as Kwik-Fit and David Lloyd Leisure.
The sale of the group’s North American business was announced on 3 July. As a consequence of that disposal and the disposal of its Italian business on 23 February, it will restate its accounts to classify these activities as “discontinued operations”.
Severn Trent will announce its half-year 2017/18 results for the period ending 30 September on 23 November.