Severn Trent (SVT) plans to pay a base regulatory dividend of 5 per cent over the next regulatory period. The group revealed its dividend objective as water companies published their business plans for the next asset management period, known as AMP7.
The proposed payout is calculated using base returns, so does not include potential outperformance or penalties from outcome delivery incentives. While the news will be welcomed by investors, the plan is not yet guaranteed. Regulator Ofwat will not complete assessments of the business plans until January, with draft determinations expected in March or April.
A few days before publishing its business plan, SVT announced the £120m acquisition of Agrivert, a renewable energy company, bulking up its anaerobic digestion and waste composting capabilities.
