Customers benefiting from the lowest average water and sewerage bills in England and Wales are receiving increased standards of service from Severn Trent Water, according to the company’s financial results for the half-year to 30 September 2010.

Among the highlights of the six months at Severn Trent was the commissioning of the UK’s first commercial-scale energy crop plant at Stoke Bardolph in Nottinghamshire, commissioned within budget and almost two months ahead of its planned programme; a successful move to a new purpose-built operations centre in Coventry; and the gaining of a Platinum rating in this year’s Business in the Community Corporate Responsibility Index, the UK’s leading benchmark of corporate responsibility.

Severn Trent also improved its position in the Consumer Council for Water (CCWater) annual report on complaint handling, moving from 9th out of 10 water and sewerage companies to 2nd (measured on CCW’s yardstick of complaints per 10,000 customers served).

Tony Wray, Chief Executive of Severn Trent, said:

“This year has seen us able to tell our customers that we now have the lowest customer bills in England and Wales - and at the same time we are in great shape to deliver further service improvements and efficiencies on behalf of our customers and shareholders.

“Severn Trent has made good progress on reducing leakage, reducing customer debt and improving pollution prevention since April - and has reinforced its leading sector position in the generation of renewable energy - but we still have plenty more to do and remain relentless in pursuing improvements.”

He added:

“In the last two months we have moved more than 1,000 staff into our new low-carbon, energy efficient operations centre in Coventry, and we are also seeing better productivity in our operations as a result of both this and implementing new work systems.”

With turnover edging up 1% compared to the equivalent period last year to £702.3m, and profit before interest and tax (PBIT) for the half-year at £272.7m (£279.3m in equivalent period last year, which saw a price rise), Severn Trent Water said it is still well placed to deliver for customers, regulators and shareholders despite a real reduction in prices from April 2010.
In addition, Severn Trent Water’s Board has now decided that the new dividend policy for the remaining 4 years of the period up to March 2015 should be set at 3% above retail inflation (RPI+3%).


The latest financial results build on improvements made in 2009/10, when Severn Trent Water reduced customer complaints by 23% and sewer flooding by 24%, also achieving its regulatory leakage target despite the challenges of the coldest winter in 30 years.