North West water supplier’s profit doubles as it hikes customer bills
Water firm United Utilities’ profit more than doubled last year before it hit customers with a steep rise in bills in April.
The company’s more than seven million customers across the North West are seeing their water bills rise by an average of 32% over the next five years.
But the biggest annual rise came in April this year, when bills surged by an average of £86 for a typical household.
The increase is designed to fund £13.7 billion of upgrades to its pipes and sewers, after the company was accused of illegally pumping raw sewage into Lake Windermere in recent years.
But for the year ending March 31, as it geared up to charge customers more, United Utilities’ pre-tax profits also more than doubled to £355 million.
And it said on Thursday that it will increase its dividend payout to investors by 4.2% to 34.6p.
Chief executive Louise Beardmore said: “We have delivered another strong set of results for customers, communities and the environment in the North West.”
She pointed to the company cutting sewage spills per storm overflow by a quarter last year.
The company was recently accused of failing to report more than 100 million litres of untreated sewage that it illegally dumped into Windermere over a three-year period.
Ms Beardmore told MPs in February that United Utilities’ record on spills and flooding “isn’t good enough”.
She took home a pay packet of £1.4 million last year, made up of a base salary worth £690,000, plus benefits, bonuses and long-term share awards.
The UK’s privatised water companies have faced growing public outrage over the extent of pollution, rising bills, high dividends, and executive pay and bonuses.
The results come after a survey revealed households’ trust in water companies has fallen to a new low amid the crisis.
Fewer households – 53%, down 2% on last year to another all-time low – believe the amount water companies charge is fair, according to the Consumer Council for Water’s (CCW) annual Water Matters study.
