Severn Trent Regulatory News (SVT)

5 September 2013

Severn Trent Plc - Statement regarding decision not to request IDoK

Severn Trent has today confirmed that it does not intend to apply to regulator Ofwat for a special interim review of its 2010-2015 price limits ("Interim Determination of K", or "IDoK") in relation to investments and costs associated with the adoption of Private Drains and Sewers ("PDaS") in October 2011.

Additional investments and costs incurred and to be incurred owing to the adoption of PDaS and which were not included in the price limits for 2010-2015, will be absorbed by Severn Trent Water and will not be passed on to customers.

The water sector's regulatory system allows each company to require Ofwat to review and possibly re-assess agreed price limits if there are material changes to its costs or revenues in specific areas that are set out in its licence.

Severn Trent Water's customers continue to benefit from the lowest average combined water and sewerage bills in England and Wales.

ENDS

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Forward-Looking Statements:

This document contains certain 'forward looking statements' with respect to Severn Trent's financial condition, results of operations and business and certain of Severn Trent's plans and objectives with respect to these items.

Forward looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.

There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates.

All written or verbal forward looking statements, made in this document or made subsequently, which are attributable to Severn Trent or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Severn Trent does not intend to update these forward looking statements.

Nothing in this document should be regarded as a profits forecast.

This document is not an offer to sell, exchange or transfer any securities of Severn Trent Plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended).