Pennon Group PLC PNN Response to Ofwat Section 13 Notice

  Pennon Group PLC (PNN) - Response to Ofwat Section 13 Notice

RNS Number : 9418R
Pennon Group PLC
23 November 2012




RESPONSE TO OFWAT SECTION 13 NOTICE TO MODIFY WATER COMPANY LICENCES



Pennon Group's subsidiary, South West Water, has notified Ofwat, along with
the majority of the other water companies, that it is unable to accept the
proposed changes to its operating Licence conditions set out in the Section 13
Notice from Ofwat dated 26 October 2012.

Whilst we support the need to make Licence changes for the next price review
process in 2014 to find new and more innovative ways to deliver sustainable
water and sewerage services it is believed that the Licence proposals set out
by Ofwat in the Notice are not in the long term interests of customers and are
insufficient to maintain investor confidence.

We welcome Ofwat's latest statement to the industry which clarifies some of
the Section 13 Notice proposals. Whilst we have not been able to consent to
the proposals we have responded to Ofwat constructively on our concerns and
how these can be addressed. South West Water looks forward to continuing
discussions with Ofwat to achieve a mutually acceptable conclusion which will
protect the interests of our investors and South West Water customers.

Pennon Group will announce its Half-Year Results to 30 September 2012 on
Thursday 29 November 2012.



23 November 2012

                     This information is provided by RNS
           The company news service from the London Stock Exchange

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