United Utilities upbeat about financial outlook despite hit from storms

14 February 2024 , 11:38

923     0

United Utilities was hit by 13 storms since the start of 2023 (Image: PA Archive/PA Images)

North West water supplier United Utilities has admitted that a series of storms over the past year have disrupted its performance.

However, it insists that its financial outlook remains steady. The company revealed that the unusually high rainfall will reduce its incentive payments for the year by £25 million. It now anticipates receiving around £40 million from outcome delivery incentives (ODI), a scheme managed by regulator Ofwat to reward companies for good customer service.

The firm stated: "Annual rainfall in 2023 was exceptionally high across the North West, with parts of our region experiencing rainfall up to 50% higher than 2022 and up to 33% higher than the long run average. Since the start of 2023, there have been 14 named storms, of which nine have occurred since the end of September."

Despite these challenges, United Utilities confirmed that it is making "no material changes" to its financial guidance for the year ending in March.

Another water company, Severn Trent, expressed confidence in achieving a four-star rating in the Environment Agency's environmental performance assessment, indicating "zero serious pollution incidents in the year".

Water bills to rise by up to £47 a year from April - how to cut your costs

The company hopes their ODI rewards to be at least £50 million. This is "despite having experienced 10 named storms since September, contributing to the last six months of 2023 being the third wettest for England on record".

Lawrence Matheson