Severn Trent makes 'good' start to the year
Water company Severn Trent said it was enjoying a good start to the year operationally and that it expects at least £50 million in customer outcome delivery incentives (ODI) outperformance payments in its 2023 financial year.
As expected, it has also seen an increase in operating costs, particularly energy and chemicals, but also noted that it had benefitted from its "decade of investment" into renewable energy generation.
The company, which serves millions of customers across the Midlands and Mid Wales, is also on track to meet or exceed targets on 100 per cent of the environment ODIs this year.
It generated 145 GWh of energy in the first quarter of this financial year which equates to over 50 per cent of its total consumption.
In a trading update, the company said it looks to retain its four-star Environmental Performance Assessment rating for 2021 and expects this to be confirmed by the Environment Agency soon.
Earlier this year, the UK-based firm set up an affordability scheme worth £30 million to support an extra 100,000 customers, with inflation driving up household bills and putting pressure on millions of Brits.
It supplies more than eight million customers across the country, and has so far supported 215,000 customers with their water bill through a social tariff – allowing them to reduce it by up to 90 per cent.
The firm made the announcement alongside its headline results for the full-year which included a 6.4 per cent spike in group turnover this year, as consumption across businesses and industries returns to pre-pandemic levels.
"We have had a good start to the year operationally and continue to expect at least £50 million in customer ODI outperformance payments in FY23. As expected, we are seeing the increase in operating costs, particularly energy and chemicals, outlined in our technical guidance," Severn Trent said.
