Statement re Ofwat's consultation on s13 proposal

RNS Number : 8480R

Severn Trent PLC

23 November 2012

 



23 November 2012

Severn Trent Plc - Statement regarding Ofwat's consultation on section 13 proposal to modify companies' licences

Severn Trent has today written to Ofwat regarding the proposed changes to Severn Trent Water's Licence, published on 26 October 2012.

Whilst Severn Trent Water is minded to accept Ofwat's proposed change to its licence, the company believes it would be better if the current proposals were modified.

In response to Ofwat's clarification note published earlier this week, the company has made constructive suggestions to overcome concerns regarding the prospect of losing 40 per cent of revenue from wholesale price controls and lack of clarity about how future prices would be controlled.

The company believes that these suggested changes would still give Ofwat the flexibility required to drive the significant reform of the industry which Severn Trent continues to be supportive of.

Severn Trent publishes its Interim Results to 30 September 2012 on Tuesday 27 November.

Enquiries:

Tony Wray	Severn Trent Plc	02477 715000
Chief Executive
Mike McKeon	Severn Trent Plc	02477 715000
Finance Director
John Crosse	Severn Trent Plc	02477 715000
Head of Investor Relations
Rob Salmon	Severn Trent Plc	02477 715000
Media Relations
Anastasia Shiach/Martha Kelly	Tulchan Communications	0207 353 4200

 

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