The regulator set out the final determinations on 12 December and after “careful consideration” UU said it has decided this offers value for all its stakeholders and has accepted the decision.
UU said the determination ensures there is a “strong focus on customer benefits”, including below inflation bill rises and “high levels of investment”.
In a statement, UU said: “Although this is a challenging price control, we are confident that, with the plans we have in place, we can maintain and improve services for customers and provide an appropriate return for our investors.”
The statement added that UU aims to keep its existing credit ratings of A3 with Moody’s and BBB+ with Standard and Poor’s.
The UU board stated that it aims to grow the dividend per share, from the 2014/15 base of 37.7 pence, by at least RPI inflation each year through to 2019/20. This target includes the lower allowed regulatory return for AMP6.
The statement added: “The United Utilities Group board believes that this represents an appropriate balance, recognising the challenges of the final determination, the importance of income to shareholders and the need for United Utilities, in the interests of all stakeholders, to retain a robust and sustainable financial profile.”