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Ofwat Final Determination For United Utilities ...
Ofwat Final Determination For United Utilities ....
About this update from United Utilities Group Plc
[{"type":"text","content":"\n \nUnited Utilities Group PLC\n\n26 November 2009\n\n OFWAT PUBLISHES FINAL DETERMINATION \n\n FOR UNITED UTILITIES WATER PLC \n\nAs part of the 2009 water price review process, Ofwat has today published its\nfinal determination for United Utilities Water PLC (UUW) covering the period 1\nApril 2010 to 31 March 2015. Water companies have two months, until late\nJanuary 2010, to decide whether to accept the final determination, or\nalternatively have it referred to the Competition Commission to be\nre-determined. UUW will consider the regulator's final proposals carefully\nbefore responding. A brief summary of Ofwat's key proposals is set out below.\n\nCapital investment\n\nA total capital investment programme included in the price limits of £3.6\nbillion (in 2007/08 prices), including infrastructure renewals expenditure of £\n0.7 billion. This comprises £1.4 billion in relation to the water service and £\n2.2 billion in respect of the wastewater service. Of this £3.6 billion capital\nprogramme, investment to meet tighter regulatory quality standards, enhance\nservice to customers and maintain the supply/demand balance is £1.7 billion.\nThe remainder of the investment relates to maintenance of UUW's substantial\nwater and wastewater assets and infrastructure.\n\nThe capital expenditure incentive scheme (CIS) ratios are 94 for the water\nservice and 108 for the wastewater service.\n\nEfficiency\n\nAn underlying operating efficiency improvement of 1.2% per annum in respect of\nthe water service and 2.4% per annum in relation to the wastewater service.\n\nReturn on capital\n\nAn average real, fully post-tax return of 4.5%.\n\nCustomer prices\n\nAn average annual real price decrease of 0.4% across the customer base over the\nfive-year period, with the following profile.\n\n 2010/11 2011/12 2012/13 2013/14 2014/15 \n \n K factor -4.3 -0.2 +0.6 +1.0 +1.2 \n\nThis final determination is available on Ofwat's website at www.ofwat.gov.uk.\n\nUnited Utilities' contacts\n\nFor further information please contact:\n\nPhilip Green, Chief Executive +44 (0) 1925 237000 \n \nTim Weller, Chief Financial Officer +44 (0) 1925 237000 \n \nGaynor Kenyon, Communications Director +44 (0) 7753 622282 \n \nDarren Jameson, Head of Investor Relations +44 (0) 1925 237033 \n \nRob Hughes, Investor Relations Manager +44 (0) 1925 237019 \n \nJames Bradley...