Severn Trent sees in-line trading despite consumption falls

UTILITY Severn Trent has said trading remains in line with expectations despite predictions that water consumption will fall.

In a management update covering the period October 1 to present, the Coventry-based firm said consumption levels were expected to follow the trend seen in the first half.

Bad debt levels for the full year are also expected to remain broadly stable compared with the first six months, although it said it continued to monitor future developments closely, especially unemployment levels.
 
Operating expenditure is line with the board expectations for the year, and below the level allowed in the Final Determination. Operating costs are expected to rise year on year, due to the impact of inflation, investment in networks, and quasi taxes, partially offset by efficiency savings.
 
“Severn Trent Services is expected to deliver an improved second half performance, compared to the first half, in line with prior guidance. However, markets remain challenging, with no significant upturn expected before the start of the next financial year,” it said.