Severn Trent to increase shareholder dividends as water bills rise Water giant Severn Trent has said it plans to hand shareholders a higher dividend for the next year as trading remains in line with targets.
On Friday, Severn Trent also reported that it expects a £100 million benefit from outcome delivery incentives (ODIs) for 2024, a regulatory framework which rewards firms which meet performance targets but compensates customers for firms who miss these targets.
In the final determination, Ofwat said that Severn Trent will be able to increase customer bills by an average of 47% over the next five years.
Severn Trent said it has proposed the increased dividend after considering the final determination which was revealed by the regulator last month.
Last month, regulator Ofwat fined troubled Thames Water £18.2 million for paying £158.3 million in dividends to shareholders which it said were not justified.
