Final Determination for South West Water
16 DECEMBER 2019
PENNON GROUP PLC
FINAL DETERMINATION FOR SOUTH WEST WATER
Ofwat has this morning published its Final Determination in respect of the K7 period (2020 - 2025).
The key elements for South West Water's Final Determination include:
· a post tax real cost of capital for the industry of 2.92% on a CPIH basis (1.92% on an RPI basis)
· a totex allowance of £2bn (wholesale and residential retail) - consistent with South West Water's Draft Determination in April 2019
· outcome delivery incentives reflecting the priorities of our customers - aligned with South West Water's Draft Determination in April 2019.
Ofwat's proposed Final Determination package is now being reviewed, and South West Water has until 15 February 2020 to respond.
Further information on Pennon and South West Water can be found on the Group's website,
For further information, please contact:
Susan Davy Chief Financial Officer
Sarah Heald Director of Corporate Affairs and Investor Relations
Jennifer Cooke Investor Relations Officer
01392 443 168
0207 251 3801
Cautionary statement in respect of forward-looking statements
Certain statements in this announcement are forward-looking statements relating to the Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management. They are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements. The Group's principal risks were described in the 2019 Pennon Group Annual Report which can be viewed online at http://annualreport.pennon-group.co.uk/ Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made. No obligation is accepted to publicly 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. Nothing in this Statement should be construed as a profit forecast.
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