United Utilities ‘good plan on the table’ for PR19

The chief executive of United Utilities has insisted it has a “good plan on the table” for PR19, which will lift 300,000 homes out of water poverty.

Speaking to Utility Week as the utility firm posted its half-yearly results, Steve Mogford said the business plan has been developed following an “unprecedented degree of customer engagement”.

“We have submitted an ambitious plan,” he told Utility Week. “We have offered up a 10.5 per cent reduction in real terms on average bills, which is particularly important in our region.

“We have high levels of deprivation and affordability is a challenge for many of our customers, but it will help lift about 300,000 homes out of water poverty.”

“Obviously, we will wait and see Ofwat’s first response by the end of January, but we are working hard now to position ourselves as we come to the end of AMP6, so we are well positioned for AMP7,” said Mogford.

“The key for us is putting out best foot forward – we’ve put a good plan on the table, and it is supported by customer research and engagement. It delivers more for less. We’re hopeful we will get a good hearing, but in the mean time we have a job to do, which is continuing to deliver services.”

In its half-year results to 30 September, United Utilities reported an underlying operating profit of £367.8 million, up from £344 million in the same period last year.

Mogford also spoke about the growing role that artificial intelligence (AI) is playing in improving service delivery.

In October, it signed a framework agreement with a Canadian technology firm, Emagin to roll out a platform called HARVI [Hybrid Adaptive Real-time Virtual Intelligence], across its entire network.

HARVI assesses vast amounts of data on a range of factors such as weather, demand for water, pump performance and electricity prices.

“Not only will it improve the efficiency of the way we operate our water networks, but it will also save us £10 million overall across the business,” said Mogford.

“We’ve also developed a software robot tool, which looks at our water network and understands how it behaves,” he added. “If it spots something unusual, it tells us something funny is going on and we should investigate. We are now getting a 70 per cent reduction in customer contact, because we are spotting issues before the customer does. The tool then allows us to reconfigure the network or get the tankers out.

“For me, that’s what United Utilities means in the water sector. We are leading the use of technology and innovation to deliver better services and higher efficiencies.”