Pennon reports £10m hit on revenue from pandemic impacts
South West Water parent company, Pennon Group, reported a £10m net reduction in revenue attributed to impacts of the pandemic with an increase in household revenue offset by lower non-household revenue.
In a trading statement last week Pennon said cash collections have remained “robust” it would “continue to monitor changes in revenue and payment patterns in response to new national and regional [Covid 19] restrictions and changes in government support for businesses and individuals.”
The company said said the largest impact of Covid 19 on water usage has been on businesses and commercial customers and noted: “Ofwat’s regulatory model allows for differences in revenue compared to the Final Determination to be trued up in future years.”
Following its £3.7bn net gain from the £4.2bn sale of its Viridor waste management operation in July Pennon, said its debt restructuring programme was “progressing well, with around two thirds repaid to date of the up to £900 million the group announced it would seek to retire.” It said was “pursuing opportunities for growth within the UK water industry.”