In its financial report for the six months to September 2016, the water firm said it “remains committed” to delivering its plan to generate the equivalent of 50 per cent of its energy needs by 2020. It will do this by investing around £190 million across a range of renewable technologies, with all projects achieving double-digit returns.
The company said that, to date, it has spent around £70 million of the £190 million, with new regulated sludge anaerobic digestion assets accounting for roughly half of that. The remaining spend on non-regulated assets included solar investment last year and food waste anaerobic digestion this year.
Renewable Energy turnover increased by £2.8 million, as a £2.2 million increase from higher generation was partially offset by a £0.9 million reduction from lower prices.
Severn Trent said its power costs decreased year-on-year to £39.7 million, as the benefit of lower wholesale electricity prices was partially offset by an increase in power consumption from higher water production volumes. It manages its power costs through a combination of self-generation, forward price contracts and financial derivatives.
The group reported a 10.8 per cent increase in profit before interest and tax to £299.4 million. Turnover for the regulated water and wastewater segment was £765.2 million (2015/16: £754.4 million) and underlying profit before tax was £268.9 million (2015/16: £265.4 million).
The company said customers “remain at the heart of its business”, with support provided to more than 36,000 vulnerable customers so far in 2016/17 – almost three times as many as last year.
The company said it currently offers the lowest combined average bills in Britain – £329 in 2016/17 – and had invested more than £250 million in maintaining the resilience of its network.
Severn Trent chief executive Liv Garfield said: “We are focused on the things that matter most to our customers while also maintaining the lowest bills in Britain. External sewer floodings are down 9 per cent year-on-year, and we have almost trebled the number of vulnerable customers supported.
“While we are encouraged by the results of everyone’s hard work, we are aware that much remains to be done to achieve the high standards we set ourselves and continue to deliver for all stakeholders.”