Pennon Group Plc - Final Determination for South West Water

 

PENNON GROUP PLC

FINAL DETERMINATION FOR SOUTH WEST WATER

Ofwat has this morning published its Final Determination in respect of the K7 period (2020 - 2025). 

The key elements for South West Water's Final Determination include:

  • a post tax real cost of capital for the industry of 2.92% on a CPIH basis (1.92% on an RPI basis)
  • a totex allowance of £2bn (wholesale and residential retail) - consistent with South West Water's Draft Determination in April 2019
  • outcome delivery incentives reflecting the priorities of our customers - aligned with South West Water's Draft Determination in April 2019.

Ofwat's proposed Final Determination package is now being reviewed, and South West Water has until 15 February 2020 to respond.