Company type | Public limited company (plc) |
---|---|
LSE: SVT FTSE 100 Component | |
Industry | Water industry |
Founded | 1989 |
Headquarters | Coventry, England, UK |
Area served | Midlands, South West |
Key people |
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Products | |
Production output |
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Revenue | £2,165.1 million (2023) [1] |
£508.8 million (2023) [1] | |
£132.2 million (2023) [1] | |
Number of employees | 7,000 (2024) [2] |
Website | www |
Severn Trent plc is a water company based in Coventry, England. It supplies 4.6 million households and business across the Midlands and Wales.
It is traded on the London Stock Exchange and a constituent of the FTSE 100 Index. Severn Trent, the trading name owned by the company, applies to a group of companies operating across the United Kingdom, United States and mainland Europe, with some involvement in the Middle East. It took its name from the two predecessor River Authorities, which managed the catchment of the Severn and the Trent. [3]
The Severn Trent Water Authority was established in 1974. [4] In July 1989, the Severn Trent Water Authority was partially privatised under the Water Act 1989, together with the rest of the water supply and sewage disposal industry in England and Wales, to form Severn Trent Water, with a responsibility to supply freshwater and treat sewage for around 8 million people living in the Midlands of England and also a small area of Wales. [3]
In May 1991, it went on to acquire Biffa, a waste management business. [3] In October 2006, Biffa was de merged from the group Severn Trent, and was subsequently listed separately on the London Stock Exchange. [5] In January 2007, the American side of Severn Trent Laboratories was sold to HIG Capital. [6]
In 1993 the company acquired East Worcester Water plc, a former statutory water company whose area was surrounded by Severn Trent's existing water supply area, and the operations were merged. [7]
In September 2007, the company announced they would be closing its headquarters in Birmingham and relocating to a custom built office complex in the centre of Coventry in the autumn of 2010. [8] [9]
In June 2016, Severn Trent Water and United Utilities formed Water Plus in preparation for the water market deregulation, to provide the retail services for their non household customers, after being granted approval by the Competition & Markets Authority. [10]
In 2017 Severn Trent plc acquired Dee Valley Water, a water-only company with an area adjoining Severn Trent Water's own. In 2018 the areas of the two operating companies were adjusted so that Hafren Dyfrdwy (the new name for the Dee Valley company) took on all Severn Trent Water's water supply and wastewater operations in Wales, and the small area of the former Dee Valley operation within England (an exclave at Chester) became part of Severn Trent Water. [11]
The main companies in the group are Severn Trent Water, Hafren Dyfrdwy and Severn Trent Services. Severn Trent Laboratories was rebranded as part of Severn Trent Services in 2010, to streamline the company and give it a single worldwide image, rather than a series of separate organisations with different identities. As with all water companies in the United Kingdom, Severn Trent is regulated under the Water Industry Act 1991. [12]
As of 2021 [update] , the company supplies about 4.6 million households and businesses in its area, [13] rising from 3.7 million in 2008. [14] Severn Trent Water has a call centre in Coventry, dealing with operational emergencies and billing enquiries, and two other call centres in Derby and Shrewsbury, which deal solely with billing enquiries. Its head office is the new custom built Severn Trent Centre in Coventry. [15]
In July 2007, the Mythe Water Treatment Works near Tewkesbury became inundated with water from the River Severn during the Summer 2007 United Kingdom floods. The water coming into the plant was contaminated, and this led to the loss of all running water for approximately 150,000 people in Cheltenham, Gloucester and Tewkesbury. [16]
In July 2008, OFWAT confirmed that it had fined Severn Trent Water £35.8 million for deliberately providing false information to Ofwat and for delivering poor service to its customers. [17] In July 2008, the company was fined £2m (reduced from a previous judgement of £4m) for poor information reporting and covering up misleading leakage data. [18]
Despite improvements, according to Ofwat, the percentage of leakages from 2010 to 2011 was the highest in England and Wales, at 27%, representing 0.5 billion litres (500,000 tonnes) per day. [19]
Year | 2014-15 [20] | 2015-16 [20] | 2016-17 [20] | 2017-18 [20] | 2018-19 [21] | 2019-20 [21] | 2020-21 [21] |
---|---|---|---|---|---|---|---|
Volume (million litres per day) | 440 | 429 | 424 | 446 | 417.8 | 398.8 | 410.2 |
On 11 March 2016, Severn Trent customers in Derbyshire were issued a "do not use" notice due to high levels of chlorine detected in the water supply, leaving thousands of households without a clean, reliable water supply. [22]
On 20 February 2024, Severn Trent Water was fined over £2 million for discharging more than 260 million litres of raw sewage into the River Trent from its Strongford Treatment Works, an incident that occurred between November 2019 and February 2020 but avoided catastrophic pollution due to high river flows from storms. [23]
In December 2024, Severn Trent Water was accused by the BBC's Panorama of an accounting trick artificially inflating its balance sheet by more than a billion pounds. An investment ('Severn Trent Trimpley') that the company claims is worth £1.68bn in its accounts, was said to have no value to the overall business in reality, but made the company appear more financially robust, supporting payments to shareholders. Severn Trent denied the accusation, saying Panorama's allegations were "completely inaccurate". [24]
The company operates a number of reservoirs, many of which are accessible for recreational use. These include: [25]
Ladybower Reservoir is a large Y-shaped, artificial reservoir, the lowest of three in the Upper Derwent Valley in Derbyshire, England. The River Ashop flows into the reservoir from the west; the River Derwent flows south, initially through Howden Reservoir, then Derwent Reservoir, and finally through Ladybower Reservoir. The reservoir is owned by the water company Severn Trent.
United Utilities Group plc (UU) is the United Kingdom's largest listed water company. It was founded in 1995 as a result of the merger of North West Water and NORWEB. The group manages the regulated water and waste water network in North West England, which includes Cumbria, Greater Manchester, Lancashire, Merseyside, most of Cheshire and a small area of Derbyshire, which have a combined population of more than seven million.
Anglian Water Services Limited is a water company that operates in the East of England. It was formed in 1989 under the partial privatisation of the water industry. It provides water supply, sewerage and sewage treatment to the area formerly the responsibility of the Anglian Water Authority. The remaining functions of the authority were transferred to the Environment Agency. Anglian Water is regulated under the United Kingdom Water Industry Act 1991.
Yorkshire Water is a British water supply and treatment utility company servicing West Yorkshire, South Yorkshire, the East Riding of Yorkshire, part of North Lincolnshire, most of North Yorkshire and part of Derbyshire, in England. The company has its origins in the Yorkshire Water Authority, one of ten regional water authorities created by the Water Act 1973, and privatised under the terms of the Water Act 1989, when Yorkshire Water plc, the parent company of the Yorkshire Water business, was floated on the London Stock Exchange. The parent company was Kelda Group in 1999. In February 2008, Kelda Group was bought by a consortium of infrastructure funds.
Dŵr Cymru Welsh Water is a not-for-profit company which supplies drinking water and wastewater services to most of Wales and parts of western England that border Wales. In total, it serves around 1.4 million households and businesses and over three million people - and supplies nearly 830 million litres of drinking water per day.
Thames Water Utilities Ltd, trading as Thames Water, is a British private utility company responsible for the water supply and waste water treatment in most of Greater London, Luton, the Thames Valley, Surrey, Gloucestershire, north Wiltshire, far west Kent, and some other parts of England. Like other water companies, it has a monopoly in the regions it serves.
The Clywedog Reservoir is a reservoir near Llanidloes, Wales on the head-waters of the River Severn. The construction of the reservoir was enabled by an act of Parliament, the Clywedog Reservoir Joint Authority Act 1963, which asserted that "At certain times the flow of water in the river is inadequate ... unless that flow were regulated so as to ensure that at those times water in addition to the natural flow will flow down the river."
Southern Water is the private utility company responsible for the public wastewater collection and treatment in Hampshire, the Isle of Wight, West Sussex, East Sussex and Kent, and for the public water supply and distribution in approximately half of this area. Some areas within the Southern Water region are supplied by a number of smaller water supply companies. Southern Water supplies an area totalling 4,450 sq. km. and serves 2.26 million customers.
Wessex Water Services Limited, known as Wessex Water, is a water supply and sewerage utility company serving an area of South West England, covering 10,000 square kilometres including Bristol, most of Dorset, Somerset and Wiltshire and parts of Gloucestershire and Hampshire. Wessex Water supplies 1.3 million people with around 285 million litres of water a day.
South Staffordshire Water plc known as South Staffs Water is a UK water supply company owned by a privately owned utilities company serving parts of Staffordshire, the West Midlands, as well as small areas of surrounding counties in England. South Staffordshire Water plc is part of South Staffordshire plc. It purchased Cambridge Water in 2011. In 2013, KKR & Co. L.P., a company registered in the United States of America, acquired South Staffordshire Water from Alinda Infrastructure Fund. As of April 2018, KKR & Co. has agreed to sell its 75% equity stake in South Staffordshire Water to Arjun Infrastructure Partners (AIP).
The Water Industry Act 1991 is an Act of the United Kingdom Parliament consolidating previous enactments relating to the water supply and the provision of wastewater services in England and Wales. It further implemented recommendations of the Law Commission.
Severn Trent Water Authority was one of ten regional water authorities established in 1974. Its area of operation was the catchments of the River Trent and River Severn. It assumed the powers and responsibilities of existing water supply authorities in those catchment areas, the Severn River Authority, the Trent River Authority and the sewage and sewage disposal responsibilities of the councils within its area.
Public water supply and sanitation in England and Wales has been characterised by universal access and generally good service quality. In both England and Wales, water companies became privatised in 1989, although Dwr Cymru operates as a not-for-profit organisation. Whilst independent assessments place the cost of water provision in Wales and England as higher than most major countries in the EU between 1989 and 2005, the government body responsible for water regulation, together with the water companies, have claimed improvements in service quality during that period.
The City of Nottingham Water Department (1912–1974), formerly the Nottingham Corporation Water Department (1880–1912), was responsible for the supply of water to Nottingham from 1880 to 1974. The first water supply company in the town was the Nottingham Waterworks Company, established in 1696, which took water from the River Leen, and later from springs at Scotholme, when the river became polluted. Other companies were set up in the late 18th century and in 1824, while in 1826 the Trent Water Company was established. They employed Thomas Hawksley as their engineer, who became one of the great water engineers of the period, and Nottingham had the first constant pressurised water supply system in the country. The various companies amalgamated in 1845, and Hawksley remained as the consulting engineer until 1879.
A regional water authority, commonly known as a water board, was one of a group of public bodies that came into existence in England and Wales in April 1974, as a result of the Water Act 1973 coming into force. This brought together in ten regional units a diverse range of bodies involved in water treatment and supply, sewage disposal, land drainage, river pollution and fisheries. They lasted until 1989, when the water industry was privatised and the water supply and sewerage and sewage disposal parts became companies and the regulatory arm formed the National Rivers Authority. Regional water authorities were also part of the Scottish water industry when three bodies covering the North, West and East of Scotland were created in 1996, to take over responsibilities for water supply and sewage treatment from the regional councils, but they only lasted until 2002, when they were replaced by the publicly owned Scottish Water.
Hafren Dyfrdwy Cyfyngedig is a water company providing water and wastewater treatment services, operating in north east and mid Wales. It provides water only in Wrexham and parts of Denbighshire and Flintshire and both water and wastewater in northern Powys. It previously served north east Wales and parts of North West England as Dee Valley Water until June 2018. Its parent entity, Dee Valley Group plc had shares listed on the FTSE Fledgling Index on the London Stock Exchange, but was purchased by Severn Trent in February 2017.
The Water Act 1989 is an act of the Parliament of the United Kingdom that reorganised the bodies responsible for all aspects of water within England and Wales. Whereas previous legislation, particularly the Water Act 1973, had focused on providing a single unifying body with responsibility for all water-related functions within a river basin or series of river basins, this legislation divided those functions up again, with water supply, sewerage and sewage disposal being controlled by private companies, and the river management, land drainage and pollution functions becoming the responsibility of the National Rivers Authority.
There are a large number of reservoirs in Wales reflecting the need for the supply of water for both industry and for consumption, both within the country itself and in neighbouring England. A number also provide hydroelectricity and many old reservoirs also provided motive power for industries, especially for the processing of minerals such as metal ores and slate.
Cae Llwyd is a reservoir located between Llwyneinion and the Ruabon Moors in Wrexham County Borough, Wales.
Ty Mawr is a reservoir located between Llwyneinion and the Ruabon Moors in Wrexham County Borough, Wales. It is next to Cae Llwyd Reservoir.