SEVERN TRENT WATER LIMITED
Company number: 02366686
Reporting period:
1 April 2022 to 30 September 2022
Report filed on:
27 October 2022
Approved by:
James Bowling
Payment statistics
Average time taken to pay invoices: 29 days
Invoices paid:
- within 30 days: 89%
- in 31 to 60 days: 9%
- in 61 days or more: 2%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 3%
Payment terms
Shortest standard payment periods
15 days
Longest standard payment period
60 days
Standard payment terms
Severn Trent’s standard payment term for new contracts is 60 days; this applies across contracts raised and would be agreed with suppliers prior to the commencement of the trading activity. On occasion, authorisation may be granted to reduce the payment terms below 60 days if there is commercial requirement/benefit in doing so. Such a change requires approval from both the Procurement and Finance teams. We would not attempt to impose payment terms longer than 60 days on any of our suppliers, nor do we use early settlement discounts as part of contractual arrangements.
Were there any changes to the standard payment terms in the reporting period?
Answer not provided
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
90 days
The maximum contractual payment terms of 90 days falls outside our current standard payment terms. These terms are only used for older contracts which have not yet fallen due for renewal.
Any other information about payment terms
In April 2020, we took the decision to support the working capital of our supply chain during the challenging times created by Covid-19, by temporarily placing all our small and medium-sized enterprise (SME) suppliers on immediate payment terms. We extended this policy and it has remained in place throughout the duration of the reported period. We intend to begin transitioning to 30 day payment terms for our small suppliers and back to the original payment terms for our medium sized supplier base in the next reporting period. We will continue to support suppliers who are in genuine cashflow distress.
Dispute resolution process
If communication between the purchaser and supplier fails to resolve the dispute, the Severn Trent Finance team will engage with the supplier and the user to bring about a resolution.
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.
Yes, this business has signed up to: Prompt Payment Code
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
Yes
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No