United Utilities (UU) has announced in its latest trading statement that it is continuing to accelerate its AMP6 capital investment programme this year.
The accelerated programme will allow the firm to deliver operational benefits early customer service, enhancing asset resilience and optimising performance under its outcome delivery incentives (ODIs).
Total regulatory capital investment for 2016/17, including infrastructure renewals expenditure, is anticipated to be around £800 million, which is similar to last year. This continued high investment level will help UU to improve and maintain customer services, deliver more environmental benefits and provide a major contribution to the regional economy.
The firm said it has seen continued strong performance in the areas of pollution incidents and private sewers. It added that the modernisation programme at its Davyhulme wastewater treatment works is also progressing well.
UU said in a statement that its current trading is in line with group expectations for the six months ending September 30, 2016.It continued to deliver improvements in operational performance and customer service.
Earlier in the year, UU attained ‘industry leading company’ status, as measured through the annual assessment of the Environment Agency, and earlier in the month it retained its Dow Jones Sustainability Index ‘World Class’ rating for the ninth year in succession. The firm said it was also encouraged by Ofwat’s 2016/17 first wave service incentive mechanism (SIM) qualitative score, which highlights more improvement in customer satisfaction in comparison with the previous year.
The company said it will also continue to invest in its ‘systems thinking’ approach, which integrates the use of its assets, leverages data intelligence and employs new work processes and technology to support operational performance enhancement. It will roll out additional new capability later in the year, supporting its drive for more improvement.
Group revenue is expected to be slightly lower than the first half of last year, reflecting the accounting impact of UU’s Water Plus business retail joint venture, which completed on June 1, partly offset by its allowed regulatory revenue changes.
