·         Severn Trent named by Ofwat as having an Outstanding plan

·         Second lowest bill in England for Severn Trent customers  

·         A £575m affordability package to support at least twice as many customers with up to 70% off bill.

·         c£12 billion investment in infrastructure across the region, including £2bn on storm overflows and river quality

·         Record investment to provide huge boost to regional economy with c7000 new jobs   

Severn Trent has been given the green light for a major multibillion pound investment programme, set to deliver huge benefits to the Midlands. The plans will improve river health, secure the region’s water supply for generations, while keeping bills affordable. 

The five-year plan is underpinned by a track record of keeping customer bills the second lowest bill in England. Severn Trent will also increase its financial support for customers to £575m to help more than 700,000 people - double the current number.  

Affordable bills and financial support

• For billions of pounds in new investments, bills set to remain second lowest in the country 
• A customer guarantee that nobody will pay for anything twice – it's all new investment - a fact Ofwat has independently confirmed today
• Extra financial support for twice as many customers, providing up to 70% off the bill and helping people to get out of debt 

Job creation  

• The investment will generate up to 7,000 new jobs directly and across the supply chain, significantly boosting the regional economy 
• New opportunities for work experience, apprenticeships and internships at Severn Trent and in its extensive supply chain  
• A ten-year commitment to help 100,000 people into work across Severn Trent’s region  

Welcoming Ofwat’s backing for the £12bn investment programme to bring growth to the region, Chief Executive Liv Garfield said: “Our customers told us what mattered most, and we listened. This multibillion-pound investment will bring huge benefits to our region now and for generations to come with a secure water supply of the best quality, reducing impact on rivers down to nearly zero, whilst importantly keeping bills affordable and helping anyone who needs extra support.    

“Our customers will continue to have the second lowest bill in the country, backed by one of the largest financial support packages available - if anybody needs help it’s there. Another boost to the local economy is significant job creation, but we won’t stop there - we’ll help thousands more across the region back to work.” 

Investment highlights

• Nearly 70,000 Severn Trent customers shaped the plan, ensuring that it delivers the outcomes people across the region care about most - this includes: 

Rapid progress on reducing the use of storm overflows  

• An additional £2 billion investment to accelerate and go even quicker to improve river quality, including £1.2bn on storm overflows.
• This year alone, £450m is being invested at 900 Midlands’ locations to reduce spills by 20% a year - once complete - with work well underway  

A secure water supply for the future  

• New water mains and sources will ensure a reliable supply for the growing population and climate change impacts, providing an extra 100 million litres a day from new water sources 
• Building on a strong track record to reduce leakage, Severn Trent aims to reduce leakage by 16%, by laying thousands of kilometres of new water mains across our region

Water and money savings

• Over one million smart meters will be installed, helping customers understand and reduce water usage.  
• People save on average 20% of water when they can see how much they’re using – good for the environment and good for bills  

Carbon emissions benefits  

• Significant investment in net zero as part of commitment to 2030 goal  
• Building on the world’s first net zero hub for operational carbon emissions in Stoke and partnership with Melbourne Water and Aarhus Vand to share global best practice   

Sector leading performance

Liv continued, “Our dedicated team of around 9,000 Severn Trent employees have enabled us to be recognised as an Outstanding company by Ofwat and we now stand ready to deliver the thousands of exciting projects that will make a huge difference to our customers and communities. 

“Thanks to our recent £1bn cash injection from our investors, we’re building on our sector leading performance to accelerate investment and deliver immediate benefits on the things that matter most, including reducing the use of storm overflows at 900 sites this year alone.” 

Severn Trent’s five-year plan builds on its strong track record of delivering large scale investment projects, being consistently recognised for earning the highest four-star rating for environmental performance by the Environment Agency (the only company in the sector last year) and recognition from Ofwat for being sector leading on financial resilience.  

Looking ahead   

The new investment round begins in April 2025 and thousands of new projects that will be delivered during the next five years were approved by regulator Ofwat in its draft determination this week, where Severn Trent was named as having an Outstanding plan.  The next round of discussions on the fine detail in the plan take place with Ofwat in the coming weeks and continue until the end of the year when the ‘Final Determination’ is issued in December.

 ENDS