united-utilities-annual-report-2015

UNITED UTILITIES GROUP PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2015Stock Code: UU.unitedutilities.comOur customersUnited Utilities Water holds licences toprovide water and wastewater servicesto a population of approximatelyseven million people in the North Westof England. We provide services toapproximately three million householdsin our region and this generates aroundtwo-thirds of our total revenues. Wealso serve approximately 200,000businesses, ranging in size from largemanufacturing companies to smallshops. Our focus over recent yearshas been on improving customersatisfaction.For our business customers we havebeen extending the range of valueaddedservices we offer, includingour on-site engineering solutions andwater efficiency advice. By offeringvalue for money, as well as theincreased range of services, we havebeen winning customers out of area.More details on how we are winningcustomers in the Scottish market,which offers attractive margins, can beseen on page 28.Our households pay just over £1 perday on average for the combined waterand wastewater services we provide.Our price determination for 2015–20means customers will benefit frombelow inflation increases to averagehousehold bills for the decade to 2020.Average household bill*Average household bill (£)6005004003002001000Our objective is to continue to provideour customers with high qualitydrinking water to meet all their dailyneeds and environmentally responsiblewastewater collection and treatmentat a price that represents good valuefor money.We are continuing to invest heavily forour customers. During the five-yearperiod to 2015, we delivered a capitalinvestment programme of around £3.8billion as we continued to improve ourasset base, delivering further benefitsfor customers. Capital investment willcontinue at high levels in the 2015–20period and is expected to remain highbeyond 2020 as we continue to:• upgrade our region’s water andwastewater networks;• maintain our ageing assets;• deliver a cleaner environment;• provide high quality water to ourcustomers; and• improve our customers’ experience.We have a strong focus on effectivedelivery of our capital programme, akey driver of value, for customers, theenvironment and shareholders.2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20RPIAverage household billCustomers will benefitfrom below inflationincreases in averagehousehold bills for thedecade to 2020SHAREHOLDER INFORMATION FINANCIAL STATEMENTS GOVERNANCE STRATEGIC REPORT* Assumes 3% p.a. RPI inflation from 2016/17 to 2019/2023