RNS Number : 8096Y

Severn Trent PLC

17 May 2021

Severn Trent Plc

Severn Trent awarded ambitious Green Recovery programme

Severn Trent welcomes Ofwat's announcement that it has received regulatory endorsement to invest GBP565million (2017/18 prices) in an ambitious Green Recovery programme to support the UK's green economic bounceback and create 2,500 new jobs in the Midlands.

The Regulator challenged all water companies to support the UK's green recovery post-pandemic. Today's announcement provides Severn Trent with a great opportunity to deliver additional long-term growth, with new investment over the next four years supporting the Company's ESG ambitions.

The Company will now be working through the detail of Ofwat's response to its plans. Once finalised, the Green Recovery will enable Severn Trent to lead the way in a number of projects, many of which will be a first for the UK, all of which will involve additional investment and the creation of new jobs. The projects, which were praised for being innovative, will benefit both local communities and the environment, and will be delivered alongside the Company's existing plans and investment for the region.

The projects will:

-- Increase water supplies with enough water to supply a city the size of Derby, using low carbon technology;

-- Encourage wild swimming by trialling the creation of two bathing rivers in stretches of the River Leam and the River Teme;

-- Accelerate environmental commitments by improving 500 kilometres of river five years earlier than planned; allowing communities and wildlife to benefit sooner;

-- Create a scale trial using a nature-based approach to reduce the risk of flooding whilst creating a green environment which will significantly benefit the town of Mansfield;

   --    Help customers to save water by introducing over 150,000 smart meters; and 

-- Remove old customer-owned lead pipes in up to 26,000 homes in two trial areas and using innovative techniques to find and replace them.

Liv Garfield, Severn Trent Chief Executive, said: "We're really pleased by Ofwat's endorsement of our ambitious Green Recovery plans. Whilst we still need to go through the finer details of the announcement, we're delighted that Ofwat shares our enthusiasm for this impressive range of proposals, which we believe will benefit all our customers.

Our communities, and the environment they care about, are at the heart of what we do. The Green Recovery programme is a key element in the Government's plans to get the nation back on its feet and improve the environment.

This investment into our region will see us lead the way by delivering a number of UK firsts including new, innovative trials to reduce the risk of flooding, increased water supplies and transformed stretches of river. What's more, we will also be creating 2,500 jobs in the Midlands at a time when increasing employment, and getting people back into work, is vital for our region.

We'll be accelerating our capital spend to deliver these impressive plans and to achieve our existing commitments earlier. Together with our Green Recovery programme, the investments we are making will play a significant role in providing communities with the confidence that the Midlands can bounce back better than before."

Whilst Severn Trent expects no material changes to today's draft determination, Ofwat is now entering a consultation period until 9 June and plans to issue its final decision in July 2021.

Severn Trent's full proposal can be found here for reference.


   Investors & Analysts 
 Stuart Howell                 Severn Trent Plc          +44 (0) 770 371 8361 
 Head of Investor Relations 
 Selina Soma                   Severn Trent Plc          +44 (0) 7976 938604 
 Investor Relations Manager 
 Jonathan Sibun                Tulchan Communications    +44 (0) 207 353 4200 
 Press Office                  Severn Trent Plc          +44 (0) 247 771 5640 

Cautionary statement regarding forward-looking statements

This document contains statements that are, or may be deemed to be, 'forward-looking statements' with respect to Severn Trent's financial condition, results of operations and business and certain of Severn Trent's plans and objectives with respect to these items.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'projects', 'potential', 'reasonably possible', 'targets', 'goal', 'estimates' or words with a similar meaning, and, in each case, their negative or other variations or comparable terminology. Any forward-looking statements in this document are based on Severn Trent's current expectations and, by their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.

Forward-looking statements are not guarantees of future performance and no assurances can be given that the forward-looking statements in this document will be realised. There are a number of factors, many of which are beyond Severn Trent's control that could cause actual results, performance and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: the Principal Risks disclosed in our latest Annual Report and Accounts (which have not been updated since the date of its publication); changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Severn Trent or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. This document speaks as at the date of publication. Save as required by applicable laws and regulations, Severn Trent does not intend to update any forward-looking statements and does not undertake any obligation to do so. Past performance of securities of Severn Trent Plc cannot be relied upon as a guide to the future performance of securities of Severn Trent Plc.

Nothing in this document should be regarded as a profits forecast.

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(END) Dow Jones Newswires

May 17, 2021 02:36 ET (06:36 GMT)

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