UU beats CSO target with two years to go

United Utilities (UU) has already exceeded its 2025 target for lowering discharges from combined sewer overflows (CSOs), having cut spills by 38% since 2020.

The company had been working to a goal of a 33% reduction by 2025.

UU said it had achieved the reduction two years ahead of its plan after implementing its Better Rivers, Better North West plan, which helped it achieve zero serious pollution incidents for 2022/23. It was one of three water companies in 2022 to achieve a 4-star rating from the Environment Agency.

In a trading update ahead of its full-year results in May, UU said its outcome delivery incentive performance for 2022/23 will be lower than forecast due to supply interruptions caused by adverse winter weather.

For the year, ODI outperformance is expected in the range of £20 million to £25 million, while the guidance for the five-year period remains at c£200 million net performance reward.

The company said it anticipates group revenue for 2022/23 being 1% lower than forecast due to lower consumption, but that it will recover this in future years.

UU set out a detailed plan for £230 million of environmental improvements across its region to improve 184km of rivers by the end of this asset management period in 2025.

Investment will be targeted at making wastewater systems more resilient to heavy rainfall and the company has marked 15 sites for upgrade and expansion. Due to the age of infrastructure in urban parts of the northwest, more than 60% of UU’s sewer networks are combined.

Louise Beardmore will formally succeed Steve Mogford as chief executive from 1 April when Mogford steps down after 12 years leading the company. Beardmore, the company’s director of customer services and people, was appointed chief executive designate in April 2022.