South West Water & SES Water Final Determinations
Ofwat published PR24 Final Determinations for SWW and SES water businesses for 2025-2030 period.
- South West Water Totex allowances £4.5bn
- SES Water Totex allowances £0.4bn
- South West Water revenues £4.4bn
- SES Water revenues £0.4bn
- Sector cost of capital 4.03%
- SWW cost of capital uplift 30 bps
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Ofwat has this morning published its PR24 Final Determination in respect of the K8 period (2025 - 2030) for the water businesses within the Pennon Group; South West Water (SWW) and Sutton and East Surrey (SES).
Ofwat continues to recognise the 'outstanding' nature of South West Water's original business plan through a 30 bps uplift to the cost of capital (subject to meeting certain targets over the forthcoming period), whilst SES benefits from a 5bps uplift for a 'good' plan.
The headlines of the Final Determination are:
- A sector wide cost of capital for the sector of 4.03% on a post-tax real basis;
- Totex[1] allowances of £4.5bn and £0.4bn for SWW and SES respectively; and
- Revenues1 of £4.4bn and £0.4bn for SWW and SES respectively over the five year period.
We are reviewing the detailed documentation which forms the Final Determinations, including the framework for risk and return, and have until mid February 2025 to respond. We will be hosting a Capital Markets Event on 25th February 2025.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.