http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20091126:RnsZ1334D
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RNS Number : 1334D

Pennon Group PLC

26 November 2009

26 NOVEMBER 2009

PENNON GROUP PLC

FINAL DETERMINATION FOR SOUTH WEST WATER

The Water Services Regulatory Authority (Ofwat) has this morning published its
Final Determination in respect of the K5 period (2010 - 2015). The key elements
for South West Water include:


 * A cost of capital for the industry of 4.5% (real, post tax basis and
equivalent to 5.1% vanilla)
 * 'K' price increases (above RPI inflation) averaging 1.9% per annum over the
five years
 * A capital programme of around £670m at 2007/08 prices (net of grants and
contributions)
 * A Capital Incentive Scheme (CIS) score of 105 (water) and 110 (sewerage)
 * Base operating efficiency improvements of 1.7% per annum

South West Water is now reviewing the package proposed by Ofwat and has until
the end of January 2010 to respond.

Further information on Pennon and South West Water can be found on the Group's
website, www.pennon-group.co.uk

For further information, please contact:

Pennon:

David Dupont - Group Director of Finance     01392 443998

Jo Finely - Investor Relations Manager           01392 443401

Finsbury:

Sally Hogan                                         0207 251 3801

26 November 2009

www.pennon-group.co.uk

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