logo
Plus   Neg
Share
Email

Severn Trent Says Considering Ofwat's Proposal To Raise Customer ODI Cap

Severn Trent Plc (SVT.L), a UK water and waste water company, said Thursday that it is considering the Water Services Regulation Authority, or Ofwat's proposal to increase the customer Outcome Delivery Incentives or ODI cap.

Earlier this year, Severn Trent Plc applied to lift the cap on its waste water customer ODIs, in line with the methodology prescribed by Ofwat. The company said its application followed a survey of over 4,000 customers, of whom 72 percent supported the principle of uncapping.

Severn Trent said it noted two items from Ofwat's publication 'Draft determination of in-period ODIs for 2018', released today morning.

This includes an adjustment to Severn Trent's 2017/18 supply interruptions customer ODI performance, resulting in a net outperformance payment across all customer ODIs for 2017/18 of 72 million pounds in 2012/13 prices pre-tax.

The second item is a proposal to increase the AMP6 cap on Severn Trent's waste water customer ODIs from 2.0 percent to 2.6 percent of Regulated Equity, which would increase the potential AMP incentives by about 56 million pounds in 2012/13 prices pre-tax. AMP6 is the Asset Management Period 6, from 2015 to 2020.

Ofwat's proposal is to also reset performance level targets for internal and external sewer flooding and pollutions to the level achieved in 2017/18, and reduce the incentive rate for external sewer flooding by 85 percent, for the remaining two years of the AMP.

Severn Trent said it will now assess the proposal outlined in the consultation document and respond to Ofwat in due course.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Video streaming giant Netflix said it will donate 1 million euros to Audiens, the social protection group of the French cultural sector, to help launch a COVID-19 emergency relief fund to support workers in the French television and cinema industry. Netflix and Audiens said they have created the new COVID-19 Film and TV Emergency Relief Fund to help the hardest hit workers in the industry. Major U.S. retail container ports are estimated to report a five-year low for imports in March as consumer demand has been impacted with millions of Americans out of work amid the coronavirus (COVID-19) outbreak, according to a report by the National Retail Federation or NRF. The U.S. Food and Drug Administration has issued warning letters to three sellers of fraudulent COVID-19 products. There are currently no approved preventatives or treatments for COVID-19, the FDA said in a statement.
Follow RTT
>