Interim Management Statement

20 July 2010

                 Severn Trent Plc Interim Management Statement                 

                    for the period 1 April to 19 July 2010                     

The Board of Severn Trent Plc confirms that trading across the group has been
in line with its expectations and prior guidance. No new material trading
events or transactions have occurred during the period 1 April to 19 July 2010.

Sales prices in Severn Trent Water decreased by 0.7% (including inflation) from
1 April 2010. Consumption across our measured income base, principally
non-household customers, has remained relatively stable year on year in the
period.

The bad debt level has remained at around 2.5% of turnover, the level reported
for the prior financial year.

Operating expenditure continues to be in line with the Board's expectations for
the year. Operating costs are expected to rise year on year, due to the impact
of higher inflation and power costs, partially offset by efficiency savings
already achieved.

It is expected that net capital expenditure (UK GAAP after deducting grants and
contributions) will be around £425 to £445 million. The level of net
infrastructure renewals expenditure included in this figure is anticipated to
be broadly in line with the previous year, 2009/10.

Higher average debt levels and higher inflation (on around £1bn of index linked
debt) will also impact on the interest charge for the year. Therefore it is
expected the interest charge will rise by around £15m vs. the prior year,
before adjustments related to pension accounting.

The expected effective current tax rate for 2010/11 remains 25% to 27%. Changes
to the UK corporation tax and capital allowances regime announced in the budget
on 22nd June will not impact the current financial year. The company is
reviewing the impact on future years. Based on current information, initial
analysis indicates that the changes will be broadly neutral over the AMP5
period.

Severn Trent Plc will announce its interim results for the financial year
ending 31 March 2011 on 23 November 2010.

As previously announced, at the close of Severn Trent Plc's annual general
meeting, to be held today at 11am, Sir John Egan will retire as Chairman of the
Boards of Severn Trent Plc and Severn Trent Water Limited.

Andrew Duff, appointed a non-executive director of both boards on 10 May 2010,
will be appointed Chairman to the Boards, Chairman of the Nominations Committee
and a member of the Corporate Responsibility and Remuneration Committees
following Sir John's retirement.

Enquiries:

Tony Wray                  Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Chief Executive                                      0121 722 4938             
                                                                               
Mike McKeon                Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Finance Director                                     0121 722 4319             
                                                                               
Andrew Marsh               Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Media Relations                                      0121 722 4555             
                                                                               
John Crosse                Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Head of Investor Relations                           0121 722 4523             
                                                                               
Peter Hewer/Mal Patel      Tulchan Communications    0207 353 4200             

Forward-Looking Statements:

This document contains certain "forward-looking statements" with respect to
Severn Trent's financial condition, results of operations and business, and
certain of Severn Trent's plans and objectives with respect to these items.

Forward-looking statements are sometimes, but not always, identified by their
use of a date in the future or such words as "anticipates", "aims", "due",
"could", "may", "should", "expects", "believes", "intends", "plans", "targets",
"goal" or "estimates". By their very nature forward-looking statements are
inherently unpredictable, speculative and involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the
future.

There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, changes in the
economies and markets in which the group operates; changes in the regulatory
and competition frameworks in which the group operates; changes in the markets
from which the group raises finance; the impact of legal or other proceedings
against or which affect the group; and changes in interest and exchange rates.

All written or verbal forward-looking statements, made in this document or made
subsequently, which are attributable to Severn Trent or any other member of the
group or persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. Severn Trent does not intend to
update these forward-looking statements.

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