The board of United Utilities has today announced that it has accepted Ofwat’s Final Determination on its AMP8 Business Plan covering the five years to March 2030.

Key activities the £13 billion investment across 2025-30 will cover include:

• Delivering c.£5.7 billion enhancement expenditure, including an industry leading £2.4 billion CSO programme to deliver a 60% reduction in spills from storm overflows this decade
• Improving water quality for over 2 million customers and enabling economic growth across the region
• Annual asset base growth of c.7%1 per annum, taking the company’s AMP8 closing asset base to over £21 billion1
• Putting in place a sector leading £525 million package of support, helping 1 in 6 households to pay their water bill by 2030
• Supporting 30,000 jobs and contributing £35 billion of economic value in the North West

Louise Beardmore, Chief Executive Officer, said:

"With the final determination agreed, we are now able to progress what will be the largest investment in water and wastewater infrastructure in over 100 years, to build a stronger, greener and healthier North West.

“This historic £13 billion investment will support 30,000 jobs across the North West, bringing focused investment in skills and opportunities, supporting economic growth in our region.

“Alongside record levels of investment, we are committed to maintaining affordable bills and providing support to customers who need it most. With a sector leading affordability package totalling £525m, we're putting in place financial support to approximately one in six households across the North West - that's approximately a 70% increase in the level of customer support provided this AMP.

Most importantly, today's announcement means we can move forward and deliver the step change in performance we all want to see."

Financing AMP8 and dividend policy

The group is in a strong financial position, with gearing of 60% and £2.6 billion of liquidity extending out to financial year 2027.

“After careful consideration of the final determination, the board confirms its intention to continue to target gearing in the range of 55 to 65%, and to aim to maintain United Utilities Water long-term issuer credit ratings of at least Baa1 with Moody's, BBB+ with Standard & Poor's (S&P) and an issuer default rating of at least BBB+ with Fitch (senior unsecured debt rating A-). This assumes that each ratings agency maintains current published ratio thresholds/guidance for United Utilities' ratings and no further changes to sector risk assessments or ratings methodologies2, a statement issued by the water company says.

The board has today also announced that it will continue to grow the dividend by CPIH inflation, in line with its long-term dividend policy.

Trading update - UU remains on track to deliver net ODI rewards higher than last year's £34.5 million.

A trading update which accompanies United Utilities’ acceptance of Ofwat’s Final Determination says the company has continued to deliver a strong operating performance in Q3 and remains on track to deliver net ODI rewards higher than last year's £34.5 million.

United Utilities recently announced a preferred bidder to design, build, finance and maintain the replacement of six tunnel sections under the Haweswater Aqueduct Resilience Programme (HARP).

The aqueduct supplies water to 2.5 million people in Cumbria, Lancashire and Greater Manchester and will be one of the largest water infrastructure projects undertaken in the North West, with an estimated construction cost between £2.5 billion and £2.9 billion.