United Utilities has today announced it has accepted Ofwat's AMP6 final determination on priice controls for 2015-20.

In a statement, United Utilities Group PLC  said that after careful consideration, its subsidiary, United Utilities Water Ltd, has decided to accept the final determination Ofwat published of price controls Ofwat published in December.

The Group said the determination delivers value for all of its stakeholders, with a strong focus on customer benefits, including reduced bills in 2015/16, alongside continued high levels of investment which will provide further environmental benefits and a significant contribution to the regional economy.

Household customers are also set to benefit from below inflation growth in average bills for the decade through to 2020.

Operational performance and customer service

The Group said United Utilities has delivered significant operational and customer service improvements over the last four years and the business was entering the 2015-20 regulatory period underpinned by a strong platform of sustainable performance.

The company statement said:

“This next regulatory period places more emphasis on companies’ operational performance and we will continue with our strong focus in this area. Although this is a challenging price control, we are confident that, with the plans we have in place, we can maintain and improve services for customers and provide an appropriate return for our investors.”

On its capital structure, the Group is aiming  to maintain efficient access to debt capital markets. - the UUG board believes it is appropriate to keep gearing, measured as net debt to regulatory capital value, within the existing target range of 55% to 65%. The Group is also aiming to maintain, as a minimum, its existing credit ratings of A3 with Moody’s and BBB+ with Standard & Poor’s for UUW and debt issued by its financing subsidiary, United Utilities Water Finance PLC.

In line with the Group’s existing policy for AMP5, the expected total dividend per ordinary share for 2014/15 is 37.7 pence. In respect of its AMP6 dividend policy, the UUG board announces that the group will target growth in the dividend per share, from the 2014/15 base, of at least RPI inflation each year through to 2019/20.

United Utilities will provide further details of its plans and initiatives for the forthcoming regulatory period at its full-year results on 21 May 2015.