united-utilities-annual-report-2015

UNITED UTILITIES GROUP PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2015Stock Code: UU.unitedutilities.comOperational KPIs 2015–20Company objective/KPIDefinitionBest service to customersWholesale outcome delivery incentive Net reward/(penalty) accrued across United Utilities’ 18 wholesale financial ODIs(ODI) compositeService incentive mechanism –qualitativeService incentive mechanism –quantitativeBusiness retail customer growthLowest sustainable costTotex outperformanceFinancing outperformanceDomestic retail cost to serveResponsible mannerLeakage – average annual leakageEnvironment Agency performanceassessmentDow Jones Sustainability Index ratingOfwat derived index based on quarterly customer satisfaction surveys, measuringthe absolute and relative performance of the 18 water companies. Each companyreceives a score in the range of zero to five, with five being the highest attainablescoreOfwat derived composite index based on the number of customer contacts,assessed by type, measuring the absolute and relative performance of the 18water companies. Each company receives a SIM point total, where the lowest scorerepresents the best performanceAmount of additional revenue from winning customers from other water retailproviders less the amount of revenue lost from losing customers to other waterretail providersProgress to date on cumulative totex outperformance across the wholesale waterand wastewater price controls versus Ofwat’s allowed totex over the 2015–20periodProgress to date on financing expenditure outperformance secured versus Ofwat’sallowed cost of debt of 2.59 per cent real over the 2015–20 periodAverage cost to serve in our domestic retail businessAverage annual water leakage from our network quantified in megalitres per dayComposite assessment produced by the Environment Agency, measuring theabsolute and relative performance of the 10 water and wastewater companiesacross a broad range of areas, including pollutionIndependent rating awarded using sustainability metrics covering economic,environmental, social and governance performanceSHAREHOLDER INFORMATION FINANCIAL STATEMENTS GOVERNANCE STRATEGIC REPORT51