Severn Trent Plc (LON:SVT) has announced the following trading update for the period to 13 July 2022.
Strong start to the third year of AMP7
· Operational Performance – We have had a good start to the year operationally and continue to expect at least £50 million in customer ODI outperformance payments in FY23. As expected, we are seeing the increase in operating costs, particularly energy and chemicals, outlined in our technical guidance.
· Environmental Performance – We are confident we will retain our 4-star Environmental Performance Assessment rating for 2021 and expect this to be confirmed by the Environment Agency soon. We also remain on track to meet or exceed target on 100% of our environment ODIs this year.
· Energy Self-generation – We are benefitting from our decade of investment in renewable energy generation and generated 145 GWh of energy in the first quarter of this financial year which equates to over 50% of our consumption. This generation is 4% higher than the same period in FY22.
· Sustainable Financing Framework – Our updated Sustainable Financing Framework will be released in July. This framework details our environmental, social, and governance performance and ambitions, enabling Severn Trent Plc and its subsidiaries to raise financing for sustainable investment and expenditure. The report will be published on our website at www.severntrent.com.
PR24 draft methodology update
Ofwat issued its PR24 draft methodology on Thursday 7th July. Severn Trent held a briefing via webcast on Tuesday 12th July. The webcast and presentation can be accessed at www.severntrent.com.
