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.
- 1 Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
- 2 Isis burns thousands of books and rare manuscripts from Mosul's libraries
- 3 People who sleep more than eight hours are more likely to have a stroke, research shows
- 4 Kanye West climbs on table at Nando's to crowd chants of 'Yeezus' before Brit Awards 2015 performance of 'All Day'
- 5 New theory could prove how life began and disprove God
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
This is what it's like to be dead, according to a guy who died for a bit
iJobs Money & Business
£17000 - £25000 per annum: Recruitment Genius: An opportunity to join this new...
£18000 - £21000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£36000 - £44000 per annum: Recruitment Genius: Encouraging more businesses to ...