Severn Trent Plc - Trading Update for the period 1 April to 17 July 2019
Financials on track
Overall, we have made a good start to the financial year and there has been no material change to current year business performance or outlook since the full-year 2018/19 results presentation on 21 May 2019. The Board continues to expect that the Group will deliver full-year trading performance in-line with its expectations and prior guidance.
· Customer - We remain on track to deliver at least £25 million in customer ODI outperformance payments this year, with our customers seeing continued improvement in the areas that matter most to them. We are progressing well with key end of AMP ODIs, with Water Framework Directive schemes set to deliver 1,600km of improvements to rivers in AMP6.
· Energy self-generation - In the first three months of the fiscal year we have generated 123Gwh from our own renewable sources, equivalent to 52% of our energy needs, positioning us on the right run rate to exceed our 50% target for the year. This is an important step in our triple carbon pledge for 2030, 20 years ahead of the recent government commitment.
· AMP7 capital delivery strategy - Earlier this month, we announced further supplier partnerships for our AMP7 capital programme, and have now recruited around 50% of our in-house capital design team, ready for a fast start to AMP7.
· Supply resilience - Our raw water resources are in a healthy position as we head into the summer period, with our overall storage around 10% higher than the same time last year.
We expect Ofwat to publish a PR19 update, including the draft determination for Hafren Dyfrdwy, on 18 July. We will provide a further announcement to the market as appropriate.