Severn Trent Plc is today holding a capital markets day at its operations centre in Coventry to provide additional information on its business plan for the next 5 years – including the announcement of a £190 million investment in renewable energy.
The investment will take place over the next five years principally in two technologies - anaerobic digestion and solar. This will take self generation of renewable energy from 28% of Severn Trent Water's gross energy consumption to around 50% by 2020.
As part of the presentation, the water company will provide a further update on efficiencies in Severn Trent Water, to prepare for the new five year regulatory period starting on 1 April. The Final Determination from Ofwat, published in December 2014, contained £372 million of efficiencies for the period 2015-2020.
Severn Trent said its management team is confident of delivering on the challenge - this is based on plans already in place to deliver these efficiencies and the progress already made against them.
£100 million has already been locked in over the five year period from re-negotiation of supplier contracts, along with the £100 million benefit from a new organisation structure previously announced in the trading update on 13 February. Together this equates to around £200 million of efficiencies over the 2015-2020 investment period.
Severn Trent Water is committed to its largest five year investment programme ever, including a capital investment programme of £3.3 billion. Customers will continue to have the lowest combined average bills in the land until at least 2020. The water company is also making provision to help four times as many customers who struggle to pay their bill over the next five years.
Severn Trent Plc is due to announce its Preliminary Results for the financial year ending 31 March 2015 on 22 May 2015.
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