Lower water meter income costs Severn Trent £25m
Utility company Severn Trent says annual revenues will be impacted by up to £25m because of a decline in water consumption among metered customers.
The latest estimate compares with the company’s forecast in November for a figure in the range of £12m and £15m.
It said the decline in water use was driven by corporate customers, adding that it was otherwise trading in line with expectations.
Severn, which reports results for the year to March 31 on May 29, serves a population of more than eight million people from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands.
It said levels of operating and capital expenditure continued to be in line with its expectations. Shares opened 3% lower following today’s update.
