Severn Trent flows into a stable period
The group, which serves more than eight million customers from the Bristol Channel to the Humber, said sales prices have fallen by 0.7 per cent since the start of April. But after a tough couple of years for utilities companies as recession-hit businesses cut water use, it said consumption among its metered customers has been relatively stable.
Severn said operating spending continues to be in line with its expectations. Operating costs are expected to rise year-on-year, because of higher inflation and power costs, although partially offset by efficiencies.
The group added net capital spending will be around 425m to 445m, with work on renewing infrastructure broadly in line with a year earlier. Higher average debt levels and higher inflation will increase its interest charge by around 15m, the group added
Severn's chairman Sir John Egan retired at its annual shareholder meeting yesterday. Andrew Duff was appointed as his replacement.