REG - Pennon Group PLC - South West Water Accepts Final Determination

PennonAnnouncement

14/02/2020 07:00

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RNS Number : 9838C  Pennon Group PLC  14 February 2020

PENNON GROUP PLC

14 February 2020

SOUTH WEST WATER ACCEPTS FINAL DETERMINATION

As part of the Price Review 2019 (PR19) process, South West Water's Final
Determination for the period 2020-2025 (K7) was published by Ofwat on 16
December 2019. After careful consideration, Pennon Group is announcing today
that South West Water will not be applying for this to be referred to the
Competition and Markets Authority (CMA).

Importantly for customers, by 2025 South West Water bills will be lower than
they are today and lower than they were 15 years earlier.

South West Water's Final Determination also includes;
 

·   a totex allowance of c.£2bn (wholesale and residential retail) -
consistent with South West Water's Draft Determination in April 2019

·   a suite of outcome delivery incentives reflecting the priorities of our
customers

·   an innovative customer sharing mechanism - WaterShare+ which offers
customers a tangible stake and a greater say in the business.

An investor document summarising key metrics from Ofwat's Final Determination
has been published on the Pennon website and can be accessed by the following
link: https://www.pennon-group.co.uk/investor-information
(https://www.pennon-group.co.uk/investor-information)

Following the decision to accept South West Water's Final Determination, the
outcome will be taken into account as part of the ongoing review of the
strategic focus, growth options and capital allocation policy for the Pennon
Group.

Pennon's current dividend policy expires in 2020, and it is Pennon's intention
to announce a new dividend policy by the full year results announcement
scheduled for 4 June 2020.

For further information, please contact:

 

Pennon

 

 Susan Davy      Chief Financial Officer                                 01392 443 168
 Sarah Heald     Director of Corporate Affairs & Investor Relations
 Jennifer Cooke  Investor Relations Officer

 

Finsbury

 

 James Murgatroyd     0207 251 3801
 Harry Worthington

 

(http://waterfuture.southwestwater.co.uk/investor-summary)

 

 

 

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