Business
United Utilities 2015-20 Business Plan Revision
United Utilities 2015-20 Business Plan Revision.
About this update from United Utilities Group Plc
[{"type":"text","content":"\n \nUnited Utilities Group PLC\n\n27 June 2014\n\n UNITED UTILITIES 2015-20 BUSINESS PLAN REVISIONS \n\nAs scheduled, United Utilities Water PLC (UUW) has submitted to Ofwat revisions\nto its business plan covering the 2015-20 period. The initial business plan was\nsubmitted on 2 December 2013 and the revisions to the plan follow extensive\ndiscussions with Ofwat, our Customer Challenge Group and our other\nstakeholders. Ofwat is expected to publish draft determinations on 29 August\n2014.\n\nOverview\n\n * Average household bills fall by a further 0.6% to 2.3% in real terms over\n 2015-20 period\n \n * Total expenditure of £6.6bn, including capex of £3.75bn, similar to initial\n plan\n \n * Comprehensive further evidence provided to support company specific\n adjustments\n \n * Proposed exclusions from totex modelling: c£960m wastewater and c£215m\n water\n \n * Retail household cost to serve adjustment of £19m p.a. due to high levels\n of deprivation\n \n * Plan based on Ofwat's weighted average cost of capital guidance\n \n * Outcome delivery incentives now include rewards as well as penalties\n \n * Revenue adjustments of c£130m relating to the 2010-15 period\n \nBalanced plan\n\nOur business plan for the next five-year period means that customers would\nbenefit from below inflation growth in average household bills for the decade\nto 2020. Our plan reflects the views of customers on service and affordability,\nit delivers a paced investment programme to meet our environmental obligations\nand it provides an appropriate return for investors.\n\nCustomer bills\n\nExtensive stakeholder engagement has highlighted that the principal concern for\ncustomers is affordability. Customers are generally satisfied with the current\nhigh levels of water and wastewater services being provided and are only\nprepared to pay for specific targeted areas of improvement, with 86% of\nhousehold customers supportive of bill rises no higher than inflation. This has\nbeen a key driver in the formulation of our plan.\n\nFollowing Ofwat's risk and reward guidance, we are now proposing an average\nreal terms bill decrease of 2.3% for household customers across the five-year\nperiod (excluding the impact of the previously announced special customer\ndiscount, which is being applied to 2014/15 bills). This compares with an\naverage real terms bil...