Trading update
Current trading is in line with the group's expectations.
Revenue has continued to increase at a rate slightly below the allowed regulated price rise for 2012/13, as expected, reflecting the on-going impact of a tough economic climate on commercial volumes. Depreciation, power and other costs have also increased as expected, largely offsetting the increase in revenue. The company continues to make good progress on its regulatory capital investment programme and remains on track to invest around £750 million in its asset base in 2012/13.
Improving operational performance and customer service continue to be top priorities for United Utilities Water (UUW).
The business met its regulatory leakage target for the sixth consecutive year in 2011/12 and remains on course to meet its target for 2012/13. Water resources in the region are robust, with reservoirs currently around 90% full.
UUW's significant progress on Ofwat's customer service measure, the service incentive mechanism (SIM), in 2011/12 has continued into 2012/13.
Encouragingly, our qualitative SIM results for quarter three 2012/13 have helped improve our ranking. Building on the performance achieved in the first half of 2012/13, UUW has now moved up to 12th position out of 21 water companies on this qualitative measure for the financial year to date. UUW was 16th in 2011/12. Overall SIM performance for 2012/13, including our quantitative SIM score, will be published, along with the industry's results,
after the financial year end.
In addition, the number of customer complaints UUW received via the Consumer Council for Water (CCW) has reduced further in the three months to December 2012 and, importantly, there have been no customer complaints requiring investigation by the CCW in the first nine months of the 2012/13 financial year. This improved performance will positively contribute to Ofwat's quantitative SIM assessment.
