Ofwat Final Determination For United Utilities Water PLC
November 26 2009 - 3:36AM
UK Regulatory
TIDMUU.
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 GBP3.6
billion (in 2007/08 prices), including infrastructure renewals expenditure of GBP
0.7 billion. This comprises GBP1.4 billion in relation to the water service and GBP
2.2 billion in respect of the wastewater service. Of this GBP3.6 billion capital
programme, investment to meet tighter regulatory quality standards, enhance
service to customers and maintain the supply/demand balance is GBP1.7 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
END
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