United Utilities Group (UU) Trading Update summary

Acceptance of final determination and investment plan

• Board has accepted Ofwat's final determination, enabling a major step change in service and environmental improvements.

• Investment program nearly doubles to £13 billion for 2025-30, including £5.7bn in enhancements and a £2.4bn CSO programme to cut storm overflow spills by at least 60%.

• Asset base expected to grow 7% annually, reaching over £21 billion by AMP8 close and supporting sector growth to 2050.

• £525m affordability package aims to help 1 in 6 households pay water bills by 2030, a 70% increase in support.

• Investment will support 30,000 jobs and contribute £35 billion in economic value to the North West.

Regulatory and financial framework

• Ofwat accepted all representations on the gated mechanism, moving large schemes into the enhancement program.

• 31 basis points uplift in cost of capital since the draft, with improvements in both equity and debt costs.

• Gearing stands at 60% with £2.6 billion liquidity extending to FY27; target range is 55%-65% with strong credit ratings.

• No plans for equity issuance or equity-linked debt; funding secured.

• Dividend policy remains progressive and inflation-linked, with continued outperformance on embedded debt.

Customer outcomes, ODIs, and affordability

• Significant improvements in ODI targets and risk protections, including company-specific targets for storm overflows and sewer flooding.

• Achieved 80% of performance commitments annually in AMP7, with strong customer experience scores.

• Despite record investment, bill increases are moderate compared to the sector.

• Sector-leading affordability package of £525 million to support one in six households through 2030.