United Utilities responds to Ofwat's Licence Pr...

United Utilities Group PLC

23 November 2012

UNITED UTILITIES RESPONDS TO OFWAT'S LICENCE PROPOSALS

United Utilities Group PLC today announces that, after careful consideration,
the Board of United Utilities Water PLC (UUW) has concluded that it is unable
to accept Ofwat's `Section 13' licence modification proposals because it
believes that, in their current form, they are not in the best interests of
customers, investors and wider stakeholders. To aid further constructive
dialogue, UUW has submitted alternative proposals to Ofwat for its consideration.

UUW's principal concern is that the extent of flexibility in Ofwat's current
licence proposals would create unnecessary and prolonged uncertainty for
investors, with the potential for this uncertainty to impact customer bills.

UUW is committed to continued positive engagement with Ofwat to support the
progressive evolution of regulation in the water industry. The company's
proposals include the licence changes necessary to facilitate the forthcoming
price review in 2014 and the development of retail competition for business
customers. UUW also recognises that additional licence amendments may be
required to accommodate specific changes to the regulatory regime in
preparation for 2020 and beyond and will actively engage in helping to ensure
that the benefits of such developments are fully evaluated and understood.

 

United Utilities contacts:

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