UU 'challenges' its targets in response to draft determination
United Utilities (UU) says it has 'challenged our efficiency plans further' as it submits representations in response to Ofwat's draft determination covering 2015-20 (AMP6). The revised plan, if approved, will lead to a 4.1% reduction in average household bills in real terms over AMP6, almost double that outlined in UU's June plan.
The company said that in response to the draft determination, it had reflected its aim to continue providing the best service to customers, at the lowest sustainable cost and in aresponsible manner whilst delivering value for shareholders. "In light of this,we have challenged our efficiency plans further and set, where practical, more stretching targets beyond those contained in our original business plansubmission."
UU said its response to the draft determination addresses the gap between Ofwat's totex assessment and thebusiness plan revision it submitted in June. Also, it benefits from further detailed discussions over this period with Ofwat, the Customer Challenge Group and other stakeholders.
Commenting on its plan expenditure, UU said the remaining totex gap between its June business plan submission and the draft determination was around £1B, comprising just under £800M for wastewater andjust over £200M for water. UU said its response to the draft determination reflects adjustments to its business plan which reduce planned totex by around £370M.
This includes reduced activity of around £90M primarily associated with2020-25 early start projects under the National Environment Programme (NEP5)and trunk mains resilience activity. The remaining proposed reduction of around£280M relates to cost efficiencies which bring UU's overall proposedwholesale totex for AMP6 down to £5.52B from £5.89B in June.
- No change on Israeli meter installations, says Southern Water Southern Water insists it will continue to install meters produced by Israeli manufacturer Arad because "they offer... Read More >
- RAA wins AMP6 deal at Severn Trent Water Richard Allitt Associates (RAA) has been appointed to Severn Trent Water's AMP6 Sewerage Management team. This contract,... Read More >
- United Utilities to reinvest £200M United Utilities (UU) is to reinvest about £200M across the North-west to improve the region's water and wastewater... Read More >
- Interview: Ben Jeffs, Chief Executive, MOSL “The whole industry has really mobilised around market opening, and the water companies deserve credit for that.” Read More >
- Close-Up: Who will be the big fish in the new water retail market? With a £2.5BN new market for non-domestic water retail to open in England in April, joint ventures, incumbents and new... Read More >
- Water Industry Procurement: could Brexit provide a fresh start? Could Brexit lead to a re-examination of the procurement rules which govern the water industry and other infrastructure... 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 >
- Close-Up: From Sludge to Bioresources As a separate price control for sludge takes shape for PR19, who will be the winners from the new market for bioresources? Read More >
- Market Operations delivery manager What are we looking for?• Innovative, challenging and dynamic leader and team player. • Experience of working in a utility network... Read more here.
- General Manager Asset Management Essential Energy Location: Port Macquarie, New South Wales, Australia Salary: Competitive Essential Energy is one of Australia’s largest... Read more here.
- Energy Growth Strategy Analyst National Grid’s energy network transports electricity to homes and businesses all over the UK. It’s an essential part of all our lives.... Read more here.