Severn Trent, supplying over 8 million people, recorded its highest-ever water demand on Saturday, surpassing records from the 2022 drought and Covid pandemic. The company urged customers to reduce usage due to increased demand for garden watering and filling pools during the current heatwave.
Severn Trent Water breached wastewater obligations but will not be fined by regulator Ofwat due to "genuine accountability" and proactive problem-solving. The company invested £98m to improve infrastructure, leading to a 41% reduction in storm overflow spills.
Water company Severn Trent avoided a fine from regulator Ofwat despite "serious and unacceptable breaches" in wastewater and sewage handling. Ofwat noted proactive identification and investment by Severn Trent, leading to a 41% reduction in spills.
Severn Trent has doubled its new CEO James Jesic's long-term incentive plan to 400% of his base salary, potentially reaching £3.1m, despite public anger over water company pay and environmental failures. The company also removed an environmental performance measure from bonus criteria.
United Utilities share price jumped 11% after the water company announced an £800m share placing with Future Fund and Atlas as cornerstone investors. Ofwat's regulatory settlement a year ago has proven more generous than initially thought, particularly for companies not incurring heavy pollution fines. UU now targets 10-11% return on equity and seeks to spend an additional £2.5bn on infrastructure, potentially adding £10 to household bills. Severn Trent rose 7% in sympathy, with both companies at all-time highs.
