Investors
Divisions of Severn Trent Group
Severn Trent Group's activities are split into three large business areas.
- Regulated Water and Waste Water
- Business Services
- Corporate and other
Changes to our structure
In 2020, we made some presentational changes to our segmental structure, moving some activities from our Business Services segment to Regulated Water and Waste Water.
In 2019, the Bioresources and Developer Services businesses were managed by, and included in, Business Services. Both businesses now form part of the appointed businesses of Severn Trent Water and Hafren Dyfrdwy, and are included in the regulatory settlement determined by Ofwat and managed by our Regulated Water and Waste Water team. We have therefore amended our segmental presentation to include Bioresources and Developer Services as part of our Regulated Water and Waste Water business.
Old Structure
Current Structure
Regulated Water and Waste Water comprises of our two water and sewerage companies – Severn Trent Water and Hafren Dyfrdwy.
This segment is split into 5 price controls:
- Water Resources
- Water Network Plus
- Waste Water Network Plus
- Bioresources
- Residential Retail
Operating Services provides contract services to municipal and industrial clients, and the UK Ministry of Defence, for the design, build and operation of water and waste water treatment facilities and networks.
We also provide retail services to UK businesses.
Severn Trent Green Power, our renewables business generating energy across solar, wind, and food waste assets.
Along with the energy generated in Bioresources, Severn Trent Green Power helps us to self-generate over 50% of our energy needs — a key contributor to our commitment to obtain 100% of our energy needs from renewable sources by 2030.
There are also potential growth opportunities in food waste through government consultation on mandated kerbside collection in the UK.
In 2017, we identified several redundant sites that could be better used for social housing.
By developing and selling this land, we will bring in another £100m in PBIT by 2027.
This will help both customers and investors through the property sales customer-sharing profit mechanism.
We have now generated £45.3 million PBIT since setting the target.
This area contains all our corporate overheads, along with some small businesses which do not roll up through Severn Trent Water.
