Calm waters at Severn Trent

20th Jul 2010 07:10

Severn Trent's customers kept consumption steady over the past three months from April, while prices declined by 0.7%.As a result, the water utility has kept its expectations and guidance unchanged for this year. Bad debts remained at around 2.5% of turnover, similar to last year. Operating costs are expected to rise year on year, due to the impact of higher inflation and power costs, partially offset by efficiency savings already achieved.Net capital expenditure this year will be around £425m to £445m. Higher average debt levels and higher inflation will increase the interest charge by around £15m.