pennon group plc said tuesday that its performance for the year ended march 31 was in line with management expectations despite a challenging macroeconomic environment the water utility group said that it continues to expect rore or return on regulatory equity outperformance for south west water to a level which doubles base returns however for the recently acquired bristol water business pennon expects rore performance to be marginally below their allowed base returns for the year the company added that it continues to expect its cost base to be impacted by inflationlinked debt and power costs in addition pennon said that it has identified gbp20 millionayear 261 million of synergies from the acquisition of bristol water