Provision of Interim Report to Ofwat

The Board of Severn Trent Plc announces today that it is giving Ofwat an
interim report into misreporting of customer relations data.

As a result of an ongoing comprehensive review of Severn Trent Water by its
managing director, Tony Wray, and his new management team, the Board of Severn
Trent Plc believes there is prima facia evidence of customer relations data
being misstated by Severn Trent Water in submissions to Ofwat. The data
concerns the handling of customer billing queries and telephone contacts over
several years. Any financial implications of the gap in reporting are not yet
known.

Ofwat has been kept fully informed since the investigation began at the end of
February and the report is expected to be completed by June. Ofwat will carry
out an independent review using forensic accountants who will report to both
Severn Trent Water and Ofwat.

Colin Matthews, the Group Chief Executive of Severn Trent Plc, said: "This
investigation is the result of an ongoing review of all our business operations
started by the new management team as part of our programme of continuous
improvement. We are determined to resolve any issues uncovered as soon as
possible. We shall continue to work in full and open co-operation with Ofwat
and obviously if customers have been disadvantaged then we shall reimburse
them."

FOR FURTHER INFORMATION CONTACT:

Peter Gavan

Director of Corporate Affairs

Severn Trent Plc

0121 722 4310