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New Pennon banking on higher demand

South West and Bristol Water owner outlined strong demand but also surging costs in its 2022 results
New Pennon banking on higher demand
  • 'Substantial' population increase in South West and Bristol Water takeover drives higher demand and revenue
  • Cost pressures hit cash profits as finance costs set to rise further

Pennon (PNN) has to face some choppy currents this year. It has forecast a hit of £8mn in added financing costs for each percentage point in inflation, meaning current trading conditions make for tough reading for the water utility’s accounting department. Power costs are also hitting operating margins, and the company said it expected wholesale electricity costs to rise 50-75 per cent this year.

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