Severn Trent, the water company focused on the Midlands and mid-Wales, says performance for the period since the beginning of April has been in line with expectations".
The price customers are paying for water increased by 5.2% from April 1st but consumption is declining.
Bad debts of people unable to pay their water bills are still running at around 2.2% of turnover with the company saying it will continue to monitor unemployment levels.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Operating costs are expected to rise year-on-year, due to the impact of inflation, a full year of operating private drains and sewer assets, and increases in quasi-taxes, but the firm says these increase should be offset by efficiency improvements.
Net capital expenditure will be between £570m and £590m for the full year while the effective rate of tax the group is paying for 2012/2013 will be between 24% and 26%.
Severn Trent shares have gained 14% since the start of the year.
BS
