United Utilities says planning for new pricing regime is 'advanced'

United Utilities said its plans to meet new water pricing requirements were at an advanced stage after it consulted with customers.

Before a webcast to outline its plans, the water and waste management company said it had contributed to a new regime announced by Ofwat, the water regulator, on 13 December.

Ofwat's 2019 price review (PR19) proposes capping financing costs that water companies can recover from customers to 2.4% – about 1.3 percentage point lower than the previous limit. The change, which takes effect from 2020, is designed to reduce water bills amid public disquiet about rising living costs and profits made by utility companies.

United Utilities supplies and treats water in the North West of England. On 22 November it reported a 10% rise in first-half underlying operating profit to £344m and said it was turning its attention to Ofwat's price review.

The company said: "United Utilities has been actively engaged in the development of this approach, contributing across the full range of working groups and providing detailed proposals in key areas […] We are advanced in our plans for PR19, informed by extensive engagement with customers regarding their needs and priorities."

United Utilities said its record of operational performance and service delivery would underpin its business plan under the new regime. It expects to provide early evidence of the likely impact of the new pricing regime in May 2018.