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.
- Wessex Water accepts Ofwat's final determination Wessex Water has become the third company to publicly accept Ofwat's final determination for PR19, but stressed to the... Read More >
- North of England should act to avoid water shortages - report A new report has said action to promote a sustainable approach to water resources is required to avoid the risk of... Read More >
- Water technology unveiled at UU Innovation Lab Demo Day Eight suppliers took part in United Utilities' Innovation Lab Demo Day with leak detection, sewer inspection and flood... Read More >
- Moving towards maintenance 4.0 Water utilities need to embrace smart asset management technologies but that is only part of the solution, writes Chris... Read More >
- Round table: Taking stock of totex Has total expenditure become enshrined in utilities' practices? A special pan-utility round table held at Utility Week... Read More >
- Round Table: Smart Asset Management for Water Companies Smart asset management is expected to drive significant improvements in water companies' operations, but is the industry... Read More >
- Into the Deep using advanced camera techniques Underwater drones, also known as remotely-operated vehicles (ROVs) have proved key to the inspection of... Read More >
- Opinion: Protecting our water assets against cyber threats It's vital that engineers start to lead the conversation on cyber security for operational technology in the water... Read More >