Dip in consumption levels out at Severn

26th Jan 2010 07:03

The decline in consumption by non-residential customers tailed off in the fourth quarter, water company Severn Trent said.The company, which said it has been trading in line with expectations since 1 October, estimates that the cutback in consumption will now result in a year on year fall in revenue of around £5m to £10m in the current financial year, compared to its previous estimate of a £15m to £20m fall.The bad debt level continues to run at around 2.3%, the same as it has been since the end of March.The company expects net capital expenditure for the current fiscal year will be around £610m to £630m, in line with expectations. The recent spell of cold weather has led to an increase in leakage levels which the company has addressed by taking on more maintenance staff. The additional staffing costs are not material in the context of total annual operating expenditure but the leaks may yet have an effect on the company’s annual leakage performance, which will be evaluated post-March.