Severn Trent said it generated 38% of its own power in the financial year to 31 March 2018 and remains on track to generate half of its own power by 2020.
The firm’s full year results show its power bill increased by £6.9m on a like for like basis (excluding the impact of the Dee Valley acquisition in February 2017).
Severn Trent cited higher pass through costs, greater consumption and the cost of responding to incidents as drivers.
During the current price control, the company has invested around £133m in renewable energy, of £190m set aside for the five-year spending period.
Anaerobic digestion is providing “attractive returns on investment”, according to chief executive Liv Garfield’s review of the year. Construction of the company’s third AD plant at Derby is now “well advanced,” according to the firm, “as are two additional thermal hydrolysis plants in our Bioresources business”.
Severn Trent says the £60m thermal hydrolysis plants make the AD process more efficient, enabling it to derive 30% more energy from the waste it treats.
Severn Trent “remains on-track to reach our 50% self-generation target by 2020, providing a good financial return and a natural hedge in times of rising energy costs,” according to the CEO’s review.
Meanwhile, the company is making its energy data public in a bid to cut its bill. Severn Trent has invited data experts – individuals or teams – to register for a hackathon at its Coventry HQ next month.