Consumption declines as prices increase at Severn Trent

CUSTOMER prices have increased at Severn Trent Water while consumption has declined year-on-year, the utility firm said today.

In an interim management statement for the period from April 1, 2011, the Coventry-based plc said trading across the group had been in line with expectations and prior guidance.

But it warned that customer prices had increased by 4.7%, including inflation, during the period while consumption across its measured income base had declined. It said this decline was at a lower rate than expected.

“We continue to target a bad debt level of 2.2% of turnover for the full year, although we continue to monitor future developments closely, especially unemployment levels,” the trading update said.

“Operating expenditure continues to be in line with the board’s expectations for the year.

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“Operating costs are expected to rise year on year, due to the impact of inflation, rising input costs and quasi taxes, offset by efficiency savings.”

The plc expects to deliver increased revenue growth although at a lower rate period-on-period in the first six months.

The firm’s interim results for the period ended September 30 are due out in November.