(Alliance News) - London-listed water utilities United Utilities Group PLC, Pennon Group PLC, and Severn Trent PLC on Monday said they have submitted their business plans to the UK water services regulator for review.
The firms outlined their spending plans for Ofwat's Price Review period, or PR24, which will cover the period from 2025 to 2030.
United Utilities, which supplies water and wastewater services in North West England, outlined a "hugely ambitious" plan for GBP13.7 billion in total expenditure across the period. The plans will support 30,000 jobs, of which 7,000 are new, United said.
The plan aims to safeguard supplies for 3 million households, and reduce combined sewer overflows by 60% in the decade to 2030. It also targets a 25% improvement in avoiding pollution incidents across the five-year period.
"We approach the plan from a robust position, with one of the lowest gearing levels in the sector at 58% today," United said.
It expects Ofwat to publish draft determinations next May/June, and final determinations by next December, after which point it will announce its dividend policy.
Additionally, United said it was trading in line with its expectations for the financial year ending March 31.
Pennon Group, which owns South West Water and Bristol Water, also submitted its five-year business plan to the regulator. It comprised a GBP2.8 billion package of capital investments, which will target storm overflows and pollututions, water quality and resilience, delivering Net Zero and environmental gains, and keeping bills affordable for customers.
"Our robust balance sheet underpins our ambition," said Chief Executive Officer Susan Davy.
Pennon confirmed it was trading in line with management expectations. It plans to release results for in half-year ended September 30 on November 29.
On Friday, Severn Trent, which supplies water across the Midlands and Wales, outlined its plan for GBP12.9 billion in spending across the five-year period.
The plan includes GBP5.0 billion of investment focused on enhancing capacity and service beyond current levels.
Severn Trent said it would be a "sustainability-led" plan including a 30% reduction in storm overflow spills, a 30% reduction in pollution, and a 16% reduction in leakage.
In order to approach the investment plan from a "robust position", it had raised GBP1 billion in an equity issue. Half of this was raised through an investment from Qatar Investment Authority, the sovereign wealth fund of Qatar.
On Monday, the firm confirmed it has submitted the plan to Ofwat.
Shares in United Utilities were up 3.1% at 978.00 pence each in London on Monday morning, as Pennon's rose 3.8% to 608.00p, and Severn Trent's rose 2.1% at 2,414.42p.
By Elizabeth Winter, Alliance News senior markets reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Severn Trent (SVT)
Pennon (PNN)