18 January 2010
The Water Services Regulatory Authority (Ofwat) published on 26 November 2009 its Final Determination in respect of the K5 period (2010 – 2015).
The Final Determination represents a very tough challenge for South West Water, but one the company is determined to meet. The company has delivered substantial efficiencies over the last two decades and continues to focus on delivering additional efficiencies to meet the demands placed upon it. Against this background and having regard to the level of customer charges in the South West, the South West Water Board has decided not to ask Ofwat to refer the Price Determination to the Competition Commission.
The Pennon Board has considered South West Water's decision to accept the Determination and also considered Viridor's prospects over the coming years. Viridor's successful strategy to create long-term sustainable profit growth is expected to continue through capitalising on its leading position in landfill waste disposal, proactively developing new waste management facilities to meet ambitious EU/UK recycling targets and successfully exploiting the huge potential in waste-based renewable energy generation. On this basis the Board is today announcing its intention to continue a progressive policy of growing the Group dividend in real terms, at least up to 2014/15.
For further information, please contact:
David Dupont – Group Director of Finance
Jo Finely – Investor Relations Manager
01392 443401 or 07785 904763
0207 251 3801
Further information on Pennon and South West Water can also be found on the Group's website, http://www.pennon-group.co.uk
Cautionary statement in respect of forward-looking statements
This document contains forward-looking statements relating to the Pennon Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, Pennon Group management. 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", "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 or will not occur in the future. Various known and unknown risks, uncertainties and other factors could lead to substantial differences between the actual future results, financial situation, development or performance of the Group and those expressed or implied in this document. These risks, uncertainties and factors include, but are not limited to, changes in the economies and markets in which Pennon Group operates; changes in the regulatory and competition frameworks in which Pennon Group operates; the impact of legal or other proceedings against or which affect Pennon Group; and changes in interest and exchange rates. Undue reliance should not be placed on forward-looking statements which are made only as of the date of this document. Nothing in this document should be construed as a profit forecast. The Group accepts no obligation publicly to revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required.