Steady start for Severn Trent
Customer prices are on the up but consumption has declined at Severn Trent Water. The Coventry-based company revealed its latest results though an interim management statement this morning.
For the full year, Severn Trent Services said it expected to increase revenue growth, although revenues are expected to be lower period-on-period in the first six months. This is because of a planned investment in operating services and new water purification products.
Customer prices at Severn Trent Water increased by 4.7 per cent from 1 April 2011. But the company said consumption had declined year-on-year in the period – although at a lower rate than expected.
Operating expenditure was in line with the board's expectations for the year. But it said operating costs were expected to rise, due to the impact of inflation, rising input costs and quasi taxes. However, the company said it planned to offset this by making efficiency savings.
The company also said it was continuing to target bad debt which is 2.2 per cent of turnover for the full year. The company said it continued to monitor future developments closely – especially unemployment levels.
