Severn Trent exceeds renewable sources target in latest financial figures

Severn Trent, one of the country’s largest water and wastewater companies has announced its renewable sources make-up 52% of its energy needs.

 

The FTSE 100 Index company said in its trading update for the period 1 April to 17 July 2019 that it remained on track to deliver at least £25m in customer ODI outperformance payments this year, with its customers seeing continued improvement in the areas that “matter most to them”.

 

It said it was progressing well with key end of AMP ODIs, with Water Framework Directive schemes set to deliver 1,600km of improvements to rivers in AMP6.

 

Last week, however, Severn Trent Water was one of several water companies that were warned to clean up their act after the Environment Agency described their performance in 2018 as “simply unacceptable”.

 

A report published by the watchdog revealed that only one of the major water and sewage companies in England was performing at the level expected, while Severn Trent dropped from 4 stars to 3 stars – a level which means it must improve its performance.

 

“Overall, we have made a good start to the financial year and there has been no material change to current year business performance or outlook since the full-year 2018/19 results presentation on 21 May 2019,” it said.

 

“The Board continues to expect that the Group will deliver full-year trading performance in-line with its expectations and prior guidance.”

 

In the first three months of the fiscal year Severn Trent has generated 123Gwh from its own renewable sources, equivalent to 52% of its energy needs, putting it in a strong position to exceed its 50% target for the year.

 

“This is an important step in our triple carbon pledge for 2030, 20 years ahead of the recent government commitment,” it said.

 

Earlier this month, it announced further supplier partnerships for its Asset Management Plan (AMP7) capital programme, and has now recruited around 50% of its in-house capital design team, ready for a fast start to AMP7.

 

“Our raw water resources are in a healthy position as we head into the summer period, with our overall storage around 10% higher than the same time last year.”

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