Rising inflation hits UK water plc profits
- From: Vol 11, Issue 12 (December 2010)
- Category: General
- Region: Europe
- Country: United Kingdom
- Related Companies: Anglian Water, Northumbrian Water, Pennon, Severn Trent, Southern Water, Thames Water, United Utilities, Welsh Water, Wessex Water and Yorkshire Water
The half-year results from the major English and Welsh water companies demonstrate the dark side of index-linked debt. The adoption of private sewers in 2011 poses a further threat.
Higher financing costs hit the pre-tax profits of the large UK water and sewerage companies in the first six months of the current pricing review period, as the sharp rise in inflation this year dramatically increased the interest payments on index-linked debt.
Thames Water took the biggest rap on this score, as its interest payable and other similar charges over ...
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