Pennon highlights key points from Ofwat report

23rd Jul 2009 08:31

Pennon Group has highlighted what it sees as the key details of the Draft Determination announced by the water regulator Ofwat this morning, as they relate to its subsidiary, South West Water.The draft determination covers the period 2010 to 2015, known as the K5 period.. The key elements for South West Water include a cost of capital for the industry of 4.5%, 'K' price increases averaging 0.9% per annum over the five years, a capital programme of around £640m at 2007/08 prices, a Capital Incentive Scheme (CIS) score of 110 (water) and 116 (sewerage) and base operating efficiency improvements per annum of 3.1% (water) and 1.8% (sewerage).South West Water will be making representations to Ofwat over the next few months once it has absorbed the details of the report. Ofwat will announce its Final Determination for the sector on Thursday 26 November.