United Utilities has today published a trading update ahead of its interim results announcement for 2026/27 on 12 November 2026.
The update says the company’s financial framework and guidance for 2026/27 remain unchanged and United Utilities is continuing to target regulatory returns of 10-11% in AMP8.
Operational performance is in line with expectations, and delivery of the AMP8 capital programme continues to progress well, with projects advancing through the investment lifecycle as planned.
United Utilities remains on track to deliver c.£ 2 billion of capital investment in 2026/27 and c.£11.5 billion across AMP8, supporting compound growth in its asset base of c.10%.
2026 Cost Change Draft Decision Response
The utility says it also remains on track to access approximately £2.5 billion of investment through the annualised AMP8 re-opener mechanism, commenting:
“Our proposals represent an efficient, risk-based approach while supporting the Government's housing, digital infrastructure and climate policy ambitions.”
If approved, United Utilities’ cost change submission for 2026/27 would represent c.£1.2 billion towards the company’s c.£2.5 billion re-opener capex guidance
The water company has submitted its response to Ofwat’s S2026 Cost Change Draft Decision, seeking support for c.£1 billion of investment to enhance network resilience, provide additional water and wastewater capacity across the region and enable economic growth in the North West.
The response sets out further evidence for a number of projects, demonstrating that they represent the best value outcomes for customers and are fully deliverable.
2026 Cost Change summary details, which is in 2022/23 prices and total expenditure relates to AMP8 only, are as follows:
Growth
- Company submission - £637 million
- Ofwat Draft Decision - £560 million
- Company response - £615 million
Asset health
- Company submission - £339 million
- Ofwat Draft Decision - £305 million
- Company response - £318 million
Windermere large “gated scheme”
- Company submission - £93 million
- Ofwat Draft Decision - £93 million
- Company response - £93 million
United Utilities has also proposed revised funding arrangements for industrial growth projects, with £191 million of strategic infrastructure investment progressing through a gated mechanism and the remaining £79 million asset-specific infrastructure to be funded directly.
The trading update says this risk-based approach aligns investment with the emergence of demand, protects customer value and ensures strategic industrial growth can be supported as requirements are confirmed.
“We look forward to continued constructive engagement with Ofwat ahead of the Final Decision in December 2026,” the company says.
Click here to download Ofwat’s Notification of the PR24 cost change process Draft Determination for United Utilities
Click here to access United Utilities Draft Decision Response documents
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