|[27JUL 99] SEVERN
TRENT WATER PRESS RELEASE
Severn Trent Responds To Call For Price CutSevern Trent Plc today issued its initial
response to the draft determination of water charges for the five years beginning April
2000 announced by Ian Byatt, Director General, Office of Water Services.
The Director General has determined that Severn Trent Water
should reduce its charges to customers by 14.1% in April 2000, with a further reduction in
real terms of 1.0% per annum in each of the two subsequent years.
Commenting on the draft determination, Group Chief
Executive, Vic Cocker, said:
"Uniquely amongst the water and sewerage companies
Severn Trent had offered a 5% price cut. This is a larger reduction than we had envisaged
but we recognise that this is a serious plan from the Regulator and we shall be discussing
with OFWAT the extent to which we can marry their suggestions with all our
responsibilities to our customers and the environment."
The Company is holding a briefing for investment analysts
and fund managers at the offices of HSBC, Vintners Place, 68 Upper Thames Street, London
EC4 on Thursday 29 July at 4.45pm.
Alan Costin, Group Finance Director 0121 722 4429
James Bradley, Brunswick 0171 404 5959