Severn Trent may appeal for rise in water bills
Severn Trent, Britain's second-biggest water company, said yesterday it may appeal to the industry regulator for an increase in customer charges after a £36m rise in costs since its five-year price control was set in 2000.
Robert Walker, Severn Trent's chief executive, said, however, that it remained confident of outperforming the targets set by Ofwat and expected to achieve gross efficiency savings of £75m by the end of the price control period.
Mr Walker said that Severn Trent would decide by September whether to apply for a so-called interim determination from Ofwat allowing it to raise bills. Much of the £36m cost increase is made up of higher insurance and rate bills and the climate change levy, which cannot be recouped from customers. But an estimated £10m of costs stemming from new environmental requirements not taken into account by the regulator may be eligible.
Severn Trent also indicated that it was ready to make further job cuts in its analytical services business in the US, which has been hit by the economic downturn and a switch in federal spending away from environmental protection in the wake of 11 September. So far 200 jobs have been axed and two laboratories closed.
Pre-tax profits for the year to 31 March rose by 5 per cent to £233m while the dividend was raised by 2 per cent to 45.9p.
Threat of 'catastrophic cascade of collisions' must be averted, warn scientists
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Missing Malaysia Airlines plane: 'All passengers' under investigation, police say
Bob Crow death: RMT Union leader dies of massive heart attack aged 52
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 2 Family forced to flee home after discovering nest of potentially deadly spiders in bananas
- 3 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 4 Russell Crowe's Noah banned in three Arab countries before worldwide premiere
- 5 Bob Crow death: RMT Union leader dies of massive heart attack aged 52
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...