Severn Trent confident on delivery incentive rewards

Midland utility Severn Trent has said it expects net customer Outcome Delivery Incentive rewards for the full-year 2016/17 to be ahead of previous guidance of £15m following a strong third quarter.

In a trading update covering the three months to December 31, 2016, the water company said while there remained two unpredictable winter months ahead, it now expected to at least meet or exceed the level achieved last year (£23.2m).

The update makes no mention of the company’s bid to acquire Welsh water business, Dee Valley.

Liv Garfield, chief executive, said: “We are pleased with our third-quarter performance which is testament to the hard work and dedication of our colleagues. While there remains much to do, we are making progress towards our goals of providing an outstanding customer experience, best-value service, and environmental leadership.

“We remain committed to delivering our £670m total expenditure efficiency target in this regulatory period, and achieving the lowest possible cost of finance for our business. We will provide a further update on progress towards these goals at our full-year results.”
 
Severn Trent will announce its full-year 2016/17 results for the year ending March 31, 2017 on May 23.