- Ofwat's final determination of price increases for 2011-15 was most favourable for Severn Trent, Pennon and Northumbrian, says Evolution analyst Lakis Athanasiou.

K-factors were better for NWG, PNN, SVT by 0.8% to 1.0% pa, while United Utilities received the least uplift by only 0.2% pa. Capex allowance was higher by around 6% for all of them bar SVT at 9%.

Overall Evolution maintain its buys in the sector and upgrades Severn Trent to buy from add. No rights issues are anticipated 'so long as SVT behaves sensibly and is not spooked by its low dividend cover'.

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