Interim Management Statement

United Utilities Group PLC

30 January 2014

                 UNITED UTILITIES INTERIM MANAGEMENT STATEMENT                 

United Utilities today issues an interim management statement covering the
period from 1 October 2013.

Trading update

Current trading is in line with the group's expectations. Customer service is
continuing to improve, as measured by Ofwat's service incentive mechanism,
underpinned by good operational and environmental performance. We continue to
narrow the gap to sector leading performance. Revenue has increased, reflecting
the regulated price change for 2013/14. This revenue increase is only partly
offset by higher depreciation and other operating costs, as the company
continues to tightly manage its cost base.

United Utilities continues to make good progress on its regulatory capital
investment programme and remains on track to invest at least £800 million in
its asset base in 2013/14, delivering benefits for customers, the environment
and the regional economy. We intend to undertake transitional investment in
2014/15 to de-risk key projects due to be delivered in the next regulatory
period. In light of this, expenditure on our 2014/15 capital investment
programme, including spend relating to private sewers, is expected to be
similar to 2013/14.

Financial position

United Utilities' financial position remains robust and its regulatory capital
asset base continues to grow, reflecting high levels of capital investment and
the impact of RPI inflation. Group net debt is slightly higher compared with
the position at 30 September 2013. This principally reflects expenditure on the
regulatory capital investment programme and payments in relation to interest
and taxation, largely offset by operational cash flows and fair value gains on
the group's debt and derivative instruments. Gearing remains stable and
comfortably within Ofwat's assumed range (55% to 65% net debt to regulatory
capital value), supporting a solid A3 credit rating for United Utilities Water.

The group now has headroom to cover its projected financing needs into 2016,
following the recent agreement of a £500 million term loan with the European
Investment Bank to support the delivery of our capital investment programme.
The loan, which can be taken in either fixed or floating interest rate form,
will have an average maturity of 10 years and is expected to be drawn down via
a number of tranches within the next 12 months.

Regulatory developments

On 2 December 2013, we submitted a business plan to Ofwat covering the 2015-20
period. The plan would allow our customers to benefit from below inflation
changes to average household bills for the decade to 2020, coupled with
substantial capital investment to maintain and improve services, as well as
providing significant benefits to the environment and the local economy.
Development of the plan included extensive research, involving around 27,000
customers and other stakeholders.

On 19 December 2013, Ofwat published a revised price review process and
timetable. As part of this process, on 27 January 2014, Ofwat published risk
and reward guidance for the industry. This included guidance on certain
financial parameters for the 2015-20 period, which we are currently reviewing.

Board changes

Mark Clare was appointed as a non-executive director of both United Utilities
Group PLC and United Utilities Water PLC with effect from 1 November 2013 and
is a member of the Audit Committee and the Nomination Committee. Mark is Group
Chief Executive at Barratt Developments PLC, a position that he has held since
2006.

Outlook

United Utilities is confident of delivering a good underlying financial
performance for the year ending 31 March 2014 and is ahead of schedule in
meeting its 2010-15 regulatory outperformance targets. We are encouraged by our
operational and customer service performance improvements and believe we can
improve further. We will continue to actively engage with our regulators, ahead
of the draft and final determinations from Ofwat later this year.

In line with its usual practice, United Utilities intends to issue a pre-close
trading update on 20 March 2014.

United Utilities contacts:

Gaynor Kenyon, Corporate Affairs Director                [phone]   
                                                                               
Darren Jameson, Head of Investor Relations               [phone]   
                                                                               
Martin Pengelley / Michelle Clarke, Tulchan              [phone]  
Communications                                                                 

This announcement is also available at: http://corporate.unitedutilities.com/
investors.aspx