Publishing its interim Management Statement, the Group said South West Water is continuing its strong performance against the 2010-2015 (K5) regulatory contract, with capital investment increased substantially over the previous year.
The 9,300km sewer network increased by approximately 50% from 1 October 2011 following the adoption of private sewers and lateral drains. Group expectation is that shareholders will receive appropriate returns for private sewer expenditure via the price setting process.
Despite record breaking low rainfall last spring, South West Water’s water resource position is at a similar level to this time last year. During last autumn and early winter South West Water used its pumped storage facilities to help to refill Colliford, Stithians and Wimbleball Reservoirs and installed new distribution pumps in East Devon to optimise use of its boreholes.
Since 1 October 2011 South West Water has signed a £60m facility with the European Investment Bank (EIB). This represents the second tranche of a £125m loan approved by the EIB towards K5 funding. South West Water has also signed an additional £40m revolving credit facility and £140m of finance lease facilities.
Full year profits at Viridor, the Group’s waste management company are expected to be below those of last year.