Ofwat adds Green Recovery conditions to Severn Trent and South Staffs licences

Ofwat has modified Condition B of the licences of Severn Trent and South Staffs Water to add a new Performance Commitment (PC) with an in-period Outcome Delivery Incentive (ODI) that will allow each company to receive green recovery in-period funding through a revenue adjustment as part of its in-period ODI determinations.

This follows Ofwat’s agreement to allow Severn Trent to receive £85m and South Staffs Water £2m as funding from customers during the current price control period for Green Recovery initiatives. Ofwat said using the existing ODI mechanism was the most practical and proportionate way of delivering this funding and that to enable this, it needed to set a PC for each company to allow the associated payments to be made.