United Utilities to invest extra £100M in resilience
United Utilities has announced it will make an extra £100M available for investment in resilience measures over the remainder of the 2015-20 AMP period, taking its five-year regulatory capex programme to approximately £3.6BN.
The company’s chief executive Steve Mogford said strong performance for its customers, shareholders and the environment, and its confidence in delivering a net outperformance, has enabled it to commit to the further investment. “This will support our resilience projects bringing additional customer benefits over the next three years,” he said.
The announcement was made in the groups financial report for 2016/17, in which it reported an underlying operating profit increase of 3 per cent to £622.9M. The group put this down to allowed regulatory revenue changes, a reduction in infrastructure renewals expenditure and lower total costs offset by the accounting impact of its non-household retail joint venture, Water Plus.
Reported operating profit was up 7 per cent to £605.5M, mainly as a result of reduced profit last year due to costs associated with its cryptosporidium water quality incident in Lancashire.
UU improved its service incentive mechanism (SIM) score to 4.42 points this financial year, compared with 4.27 points in 2015/16.
Customer complaints were “considerably lower” than the previous year, with a 27 per cent year on year reduction and a 55 per cent reduction in the circumstance where an issue is not resolved at first contact.
The group introduced Priority Services in May 2016, which provides “more targeted support” for customers experiencing short- or long-term personal or financial difficulties. Since its launch, more than 11,000 customers have registered for the service.
UU also said it has launched its new customer website, which includes web chat services across extended hours and is mobile-enabled. Additionally, the company recently launched the first fully interactive and real-time customer app in the water sector.
In addition to the electricity it generates from bioresources, the company is developing other renewable energy facilities. It has invested £45M in solar in the first two years of the 2015-20 period. Mogford told WWT's sister title Utility Week the group will continue to invest in solar, which it sees as a “huge opportunity”. It expects to invest more than £100M in solar generation across the five-year period, “provided it can see the returns”.
-A version of this article first appeared on Utility Week.
- UU aims to 'de-risk' key AMP6 projects United Utilities (UU) has reported increased revenue since October 1, reflecting the regulated price change for 2013/14.... Read More >
- Liverpool WwTW extension to be operational next spring, says UU United Utilities (UU) says it is on target to get the £200M extension at Liverpool wastewater treatment works operational... Read More >
- Crypto crisis blamed as UU delays Haweswater Aqueduct scheme The cryptosporidium crisis has forced United Utilities (UU) to put a major multimillion-pound aqueduct maintenance and... Read More >
- Industry View: Let's not drop the ball after PR19 There must be better alignment between PR19 strategic plans and actual delivery plans if water companies are to get full... Read More >
- Round Table: Water Industry Procurement in AMP6 and beyond Have procurement practices so far in AMP6 reflected the regulatory shift towards whole-life cost and Totex? Participants... Read More >
- Disappointment replaces AMP6 optimism The first year of AMP6 is complete but has the regulatory cycle lived up to expectations of renewed vigour, or has it been... Read More >
- Competition is a driver for innovation Domestic water competition is planned for England before the end of this Parliament, and contractors that innovate to... Read More >
- Blog: Connecting data for efficiency and productivity Steve Hanslow believes that at a time when AMP6 is focussing water companies on total expenditure (TOTEX) driven outcomes,... Read More >
- Supply Network Manager Location: Somerset Salary: £30,767 to £41,226 per annum Looking for your next career move in water supply? If so, we may have a fantastic... Read more here.
- Senior Analyst The Organisation The Water Industry Commission for Scotland is the economic regulator of the water and sewerage industry in Scotland. ... Read more here.
- Key Account Manager Key Account Manager Competitive Salary: £40,000+ DOE London and Thames Valley Knowledge, Skills & Experience Commercially astute with... Read more here.
- Contracts Manager Contracts Manager Castle Water Limited Castle Water is the leading independent water retailer in the UK, and one of the fastest growing... Read more here.
- Divisional Customer Services Director Castle Water is the leading independent water retailer in the UK, and one of the fastest growing utility supply companies, supplying services... Read more here.