Pennon Regulatory News (PNN)

PENNON GROUP PLC

11 April 2019

Draft Determination for South West Water

Following the announcement on 31 January that the 2020-2025 business plan of Pennon Group's subsidiary, South West Water Limited, was assessed as 'fast tracked', Ofwat has today published a Draft Determination for South West Water which is largely based on the company's own business plan and forecasts. 

South West Water is the only water and sewerage company to have achieved fast track status for two consecutive price reviews.

South West Water is now reviewing the Draft Determination proposed by Ofwat and will respond to the Regulator by the due date of 24 May 2019. Ofwat will announce its Final Determination for the company on 11 December 2019.

The company's five-year business plan was submitted to Ofwat in September 2018 following its biggest ever consultation, which showed a customer approval rating of 88% and received the support of the independent WaterFuture Customer Panel.

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Cautionary statement in respect of forward-looking statements

Certain statements in this announcement are forward-looking statements relating to the Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management. They are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements. The Group's principal risks were described in the 2018 Pennon Group Annual Report which can be viewed online at http://annualreport.pennon-group.co.uk/. Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made. No obligation is accepted to publicly revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required. Nothing in this Statement should be construed as a profit forecast.