WARRINGTON (dpa-AFX) - United Utilities Group PLC (UU.L, UUGRY.PK) announced Monday that United Utilities Water Limited has submitted its business plan covering the 2020-25 period.
The highlights of the proposal include 10.5% reduction in real terms in average bills between 2020 and 2025, and balanced outcome delivery incentive or ODI package with range of outcomes estimated at plus or minus 2% of return on regulated equity across AMP7, equivalent to around plus or minus 410 million pounds.
The proposal also include reduction of over 1 billion pounds in expenditure compared with AMP5, and bold strategy of innovation with further advancements in Systems Thinking capability.
The company also expects to deliver a major water resilience scheme with estimated construction costs of over 750 million pounds in AMP7 and AMP8 to be directly procured for customers in Manchester and the Pennines.
Further, the company also proposes adopting an RPI-stripped appointee cost of capital of 2.4% consistent with Ofwat's early view, as well as leading the industry in operational, corporate and financial resilience.
Steve Mogford, Chief Executive Officer, said, 'Our business plan sets out our ambition to build on our achievements in AMP6 and deliver a better quality, more reliable water and wastewater service for customers in the North West of England to 2025 and beyond. We are cutting bills such that they will be lower in real terms in 2025 than they were 15 years ago, whilst also delivering higher standards of service, increasing resilience, delivering innovation and investing for the long-term.'
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