REG - Pennon Group PLC - South West Water & SES Water Final Determinations

PennonAnnouncement

19/12/2024 08:15

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RNS Number : 7430Q  Pennon Group PLC  19 December 2024

Pennon Group plc

 

PR24 Final Determinations for South West Water and Sutton and East Surrey
Water

 

Ofwat has this morning published its PR24 Final Determination in respect of
the K8 period (2025 - 2030) for the water businesses within the Pennon Group;
South West Water (SWW) and Sutton and East Surrey (SES).

 

Ofwat continues to recognise the 'outstanding' nature of South West Water's
original business plan through a 30 bps uplift to the cost of capital (subject
to meeting certain targets over the forthcoming period), whilst SES benefits
from a 5bps uplift for a 'good' plan.

 

The headlines of the Final Determination are:

·    A sector wide cost of capital for the sector of 4.03% on a post-tax
real basis;

·    Totex 1  (#_ftn1) allowances of £4.5bn and £0.4bn for SWW and SES
respectively; and

·    Revenues(1) of £4.4bn and £0.4bn for SWW and SES respectively over
the five year period.

 

We are reviewing the detailed documentation which forms the Final
Determinations, including the framework for risk and return, and have until
mid February 2025 to respond. We will be hosting a Capital Markets Event on
25(th) February 2025.

 

For further information, please contact:

 

 Institutional equity investors and analysts

 Louise Rowe - Compliance, ESG and IR Director  01392 443 260

 James Murgatroyd - FGS Global                  020 7251 3801

 Debt investors

 Chris Tregenna - Group Treasurer               01392 443 260

 Retail investors

 Link Asset Services                            0371 664 9234

 

 1  (#_ftnref1) 2022/23 real price base

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