The company's customers will benefit from new investment totalling £2.5 billion – an average of £800 per property (and more than two and a half times the current average annual household bill of £305). The money will be used to maintain and improve water and sewerage services in areas which customers have told us are their priorities. Customers will also have the lowest average water and sewerage bills in the UK over the five-year period.
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Tony Wray, Chief Executive of Severn Trent, said: "Our plans will ensure that we can offer customers the lowest average water and sewerage bills across the whole of England and Wales, while still giving shareholders a sustainable return and improving the efficiency of our operations.
"Ofwat's Final Determination represents a tough outcome. By continuing our programme of process and efficiency improvements, we believe we can meet our obligations for the next five years, while also delivering the service improvements our customers have told us they value."
Severn Trent’s business plan for 2010-15 allows the company to deliver:
- Lowest possible bills – average household bills will fall by 4% (in real terms) by 2015
- Challenging efficiency targets to keep bill increases to a minimum
- Improved services, such as stronger network resilience and reductions in sewer flooding
- Environmental improvements through improving sewage treatment
- Investment in assets to ensure that environmental and drinking water quality improvements achieved in the past two decades are maintained
- Sustainable improvements to improve the water environment, develop sustainable drainage options, and minimise our carbon footprint
