Severn Trent confirmed that its trading performance for the current year remains in line with expectations, in an update to the London Stock Exchange.
The UK water and waste management utility reported that it expects to receive at least £50m in outperformance payments for 2018 from water regulator Ofwat, in recognition of delivering a good service for its Midlands and mid-Wales customers.
The statement issued by the company stated: “We are focused on providing benefits to our customers, communities, colleagues and investors, and we have generated sector-leading outperformance payments on key customer outcome delivery incentives (ODIs) and continue to do well year-to-date.
“We have positive momentum on waste, particularly on internal and external sewer flooding, category three pollutions and serious pollution incidents.
“On water, we have had more supply interruptions than normal in the last quarter, but are encouraged by the reduction in water quality complaints, which were down 12% year-on- year. We have delivered material reductions in our cost of finance.”
Pay gap progress
Severn Trent also admitted that its gender pay gap, which stands at 2.4%, had further to go, but added that it is making “strong progress” in supporting workplace diversity, gender pay equality and social mobility.
The update for the current financial year to the end of March was in line with the guidance issued by Severn Trent back in November. The company recently told customers that its charges for the coming year will rise by 3.3%, with the average bill set to increase by £11 to £348.
Severn Trent shares rose following the statement and were up 23.5p at 1,839.5p in mid-morning trade.