Draft Determination for South

RNS Number : 1450W

Pennon Group PLC

23 July 2009

 

23 July 2009

PENNON GROUP PLC

DRAFT DETERMINATION FOR SOUTH WEST WATER

The Water Services Regulatory Authority (Ofwat) has this morning published its Draft Determination in respect of the K5 period (2010 - 2015). The key elements for South West Water include:

• A cost of capital for the industry of 4.5% (real, post tax basis and equivalent to 5.1% vanilla)

• 'K' price increases averaging 0.9% per annum over the five years

• A capital programme of around £640m at 2007/08 prices 

• A Capital Incentive Scheme (CIS) score of 110 (water) and 116 (sewerage)

• Base operating efficiency improvements per annum of 3.1% (water) and 1.8% (sewerage)

South West Water is now reviewing the package proposed by Ofwat and will be making representations to the industry regulator over the next few months. Ofwat will announce its Final Determination for the sector on Thursday 26 November.

Further information on Pennon and South West Water can be found on the Group's website, www.pennon-group.co.uk

For further information, please contact:

Pennon: 

David Dupont - Group Director of Finance        01392 443998

Jo Finely - Investor Relations Manager              01392 443401

Finsbury: 

Sally Hogan                                                        0207 251 3801         

23 July 2009

www.pennon-group.co.uk

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