Although we have assessed that certain sub-elements of the appointee cost of capital are, on an individual basis, set at the very low end of or even below an acceptable range, we have been able to adopt the Ofwat early view WACC on an overall basis, as part of the risk and return balance and price control package set out in our full business plan document. It is one of the reasons I am proud to work for United Utilities and proud of the plan we have proposed. The table below shows a reconciliation between the wholesale total expenditure totex programme in AMP5 and that in our AMP7 business plan submission: We have designed a package of performance commitments, targets and incentives that covers all aspects of service and environmental performance that are important to customers and stakeholders and that incentivises innovation in our operations. To mitigate the impact of this on customer bills, we have also re-profiled revenues to ‘flatten’ the profile of key ratios over , and hence minimise the required level of PAYG advancement. This target is stretching, but one that we think we have a good opportunity of achieving.
Choosing your water retailer. The bill impacts of these adjustments are relatively modest, and still enable us to propose a substantial reduction in bills in real terms over AMP7 as part of our business plan, which has received high levels of customer support. Retail margin – residential. The table below shows how this WACC is broken down: The webcast can be accessed at the following link: We have designed a package of performance commitments, targets and incentives that covers all aspects of service and environmental performance that are important to customers and stakeholders and that incentivises innovation in our operations. Overall cost of debt RPI real.
United Utilities PR19 Business plan data tables – June – Ofwat
We have reviewed our overall outcome delivery incentive ODI package to ensure that there is an appropriate balance of risk and return. Choosing your water retailer. Beyond ongoing research, our broader public engagement campaign reached over 1. Throughout AMP6, United Utilities took the decision to build a much deeper understanding of the customer base we serve, and our level of customer participation increased five-fold compared to PR We have significantly reduced leakage over the last 25 years and have met our leakage target for over a decade.
These significant savings are achieved through innovations applied in AMP6 and planned for AMP7, market testing our cost base and a better challenge of needs both internally and externally with our quality regulators.
Better challenge of cost needs internally and with quality regulators. In many ways, we are already leading the way for the industry in the areas of operational, corporate and financial resilience and our plan sets out how we intend to raise the bar even further.
The table below shows how this WACC is broken down: Our plan proposes one significant resilience project that sits outside of the core total expenditure budget to ensure the resilience of potable water supplies to plwn in Manchester and the Pennines.
Cost of equity RPI real. The webcast can be accessed at the following link: Our regional supply-demand surplus has historically meant that there has not been a strong water resource driver to reduce leakage beyond the sustainable economic level, however we recognise there are wider benefits to leakage reductions and have therefore set a target to deliver a 15 per ubsiness reduction by the end of AMP7.
This is a strong value for money proposition, which research shows over 80 per cent of our customers support, and which we are committed to deliver. These populations are served by the Haweswater Aqueduct for which we are proposing a major scheme, with strong customer support, to deliver replacement tunnels across AMP7 and AMP8 using a direct procurement approach, as this is most likely to be the best value solution.
Delivering this for our customers will also mean that average bills will be around 14 per cent lower in real terms in than they were 15 years ago inwhilst service standards and environmental quality continue a path of significant improvement.
United Utilities – Behind the scenes in developing a fast-track business plan
This announcement and the associated presentation will be available at: Reviewing the first year of the business retail water market. To mitigate the impact of this on customer bills, we have also re-profiled revenues to ‘flatten’ the profile of key ratios overand hence minimise the required level of PAYG advancement. A lot of long days and hard work. We have also made substantial contributions towards customer affordability schemes out of shareholder funds.
Data tables and models.
Our full PR19 business plan can be accessed at the following link: Our plan represents the next step towards our vision to be the best UK water and wastewater company and has benefited from extensive engagement with customers and other stakeholders in our region. Capital expenditure and RCV. Final proposed bill profile including Manchester and Pennines Resilience busines.
We support the wider application of financial incentives to performance commitments and have applied financial incentives to almost all our measures, with most subject to both outperformance payments for stretching performance and underperformance penalties. A clear view of our objectives and responsibilities. Terms and conditions relating to the use and distribution of this information may apply. So what would I jtilities if I was asked what makes a successful business plan?
RCV – year-end nominal. The table below shows the impact of these adjustments on average customer bills: We have built headroom through AMP6 to put ourselves in the best position going into AMP7, and are putting forward the best business plan that gives us a good opportunity to deliver for our shareholders as well as our customers through continued performance improvements.
Depreciation determined by RCV run-off and post depreciation. We are excited about what it means for AMP7 and beyond and we are confident that this is a very high quality and ambitious plan, rich in gusiness, with a compelling proposition of bill reductions and service improvements. We took the time to understand more about customer motives and behaviour, to utilise this to deliver services more effectively and efficiently.