Statement re IDoK application

Severn Trent PLC
06 November 2002

Stock Exchange Announcement



Severn Trent responds to OFWAT's draft IDoK announcement

Severn Trent has today received from OFWAT its Draft Determination on the
Company's recent IDoK (Interim Determination of K) application. The application
was submitted in September as a result of increased investment and operating
costs over the period 2000-2005.

Subject to consultation, OFWAT proposes not to allow Severn Trent to increase
bills for the remaining two years of the current price review period, from April
2003 to March 2005.

Severn Trent identified significant extra costs in its IDoK application.
However, in its draft determination OFWAT currently takes the view that the
qualifying costs do not exceed the required threshold of 10% of the water
company's turnover.

Severn Trent continues to believe it has a robust case. There is a further
opportunity for discussion with OFWAT later this month before OFWAT makes its
final determination in December.


Brian Duckworth                                    Severn Trent                0121 722 4947
Managing Director
Severn Trent Water
Alan Perelman                                      Severn Trent                0121 722 4176
Group Finance Director
Peter Gavan                                        Severn Trent                0121 722 4310
Director of Corporate Affairs
Julian Wais                                        Severn Trent                0121 722 4295
Head of Investor Relations



Ends


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