Print   

Thursday 26 November, 2009

United Utilities Grp

Ofwat Final Determination For United Utilities ...


United Utilities Group PLC

26 November 2009

                      OFWAT PUBLISHES FINAL DETERMINATION                      

                        FOR UNITED UTILITIES WATER PLC                         

As part of the 2009 water price review process, Ofwat has today published its
final determination for United Utilities Water PLC (UUW) covering the period 1
April 2010 to 31 March 2015. Water companies have two months, until late
January 2010, to decide whether to accept the final determination, or
alternatively have it referred to the Competition Commission to be
re-determined. UUW will consider the regulator's final proposals carefully
before responding. A brief summary of Ofwat's key proposals is set out below.

Capital investment

A total capital investment programme included in the price limits of £3.6
billion (in 2007/08 prices), including infrastructure renewals expenditure of £
0.7 billion. This comprises £1.4 billion in relation to the water service and £
2.2 billion in respect of the wastewater service. Of this £3.6 billion capital
programme, investment to meet tighter regulatory quality standards, enhance
service to customers and maintain the supply/demand balance is £1.7 billion.
The remainder of the investment relates to maintenance of UUW's substantial
water and wastewater assets and infrastructure.

The capital expenditure incentive scheme (CIS) ratios are 94 for the water
service and 108 for the wastewater service.

Efficiency

An underlying operating efficiency improvement of 1.2% per annum in respect of
the water service and 2.4% per annum in relation to the wastewater service.

Return on capital

An average real, fully post-tax return of 4.5%.

Customer prices

An average annual real price decrease of 0.4% across the customer base over the
five-year period, with the following profile.

               2010/11      2011/12      2012/13      2013/14      2014/15   
                                                                             
  K factor       -4.3         -0.2         +0.6         +1.0         +1.2    

This final determination is available on Ofwat's website at www.ofwat.gov.uk.

United Utilities' contacts

For further information please contact:

Philip Green, Chief Executive                          +44 (0) 1925 237000   
                                                                             
Tim Weller, Chief Financial Officer                    +44 (0) 1925 237000   
                                                                             
Gaynor Kenyon, Communications Director                 +44 (0) 7753 622282   
                                                                             
Darren Jameson, Head of Investor Relations             +44 (0) 1925 237033   
                                                                             
Rob Hughes, Investor Relations Manager                 +44 (0) 1925 237019   
                                                                             
James Bradley / Tom Murray, Tulchan Communications     +44 (0) 20 7353 4200  



Investegate takes no responsibility for the accuracy of the information within the site.


The announcements are supplied by the denoted source. Queries about the content of an announcement should be directed to the source. Investegate reserves the right to publish a filtered set of announcements. NAV, EMM/EPT, Rule 8 and FRN Variable Rate Fix announcements are filitered from this site.



Investegate      © 2012 FE. All rights reserved.