Severn Trent submits plans to regulator for £12.9bn investment
Severn Trent has submitted its plans to Ofwat, to invest £12.9bn from 2025.
7,000 jobs are expected to be created as part of the ambitious programme, which will direct £5bn towards securing new water resources, addressing 99% of the reasons attributed to poor ecological rivers, eliminating 240,000 tonnes of CO2e and delivering operational Net Zero by 2030.
In the six months to September 30, the water company saw revenues of £1.16bn, a 9.7% increase on the previous year, driven by higher revenues in its regulated water and waste water business which was up £95.4m.
Following a successful equity placing raising £1bn, with half coming from the Qatar Investment Authority, cash flow requirements are now funded to early 2026.
Liv Garfield, Chief Executive, Severn Trent Plc, said: “Our team has delivered for customers with a sector-leading performance over the last six months, driven by a £500 million investment in the Midlands. We’re doing more than ever, whether it’s protecting the environment where we’re on track to achieve the highest 4* status from the Environment Agency for a record fifth consecutive year, operationally – delivering our best ever performance reducing leakage and blockages, and in our community where 100,000 people are being supported out of poverty.
“We’re delivering for customers today, and also preparing for the future. We have set out plans to invest £12.9bn from 2025, the equivalent of £2,400 per household. These plans will bring huge benefits to nature including healthier rivers, 7,000 jobs to our region through new roles, insourcing and in the supply chain, as well as a financial support package to help around one in six families navigate cost-of-living pressures. We’re hugely excited about the economic, environmental and societal benefits this will bring to the Midlands for decades to come.”