United Utilities has halved supply interruptions to customers over the past year and is on track for its lowest rate of leakage.
The company was challenged by Ofwat to cut leakage by 20 per cent during 2020-25, with its rate of 132 litres lost daily per household in 2019/20 above the national average of 112 litres per household per day.
In a trading update published ahead of its full year results to 31 March, the company also confirmed it has recorded no serious pollution incidents for a second year. It is set to achieve a four-star rating from the Environment Agency in its 2020 annual assessment.
The company said it is on-track to earn rewards for outcome deliver incentives up to £20 million for the year.
Lower underlying operating profit is anticipated compared to 2019/20 because of lower revenues and higher infrastructure renewals expenditure. Net reduction in revenue is expected to be around 3 per cent.
Its non-household retail joint venture with Severn Trent, Water Plus, agreed financing with the Royal Bank of Scotland in November of £70 million. UU plans to convert £32.5 million of existing working capital loans to the retailer as long term fixed capital to support customers through the recovery from the pandemic.
At the start of March at a capital markets event chief executive Steve Mogford said the company anticipates earning £20 million in outperformance payments during the first year of AMP7 and predicted exceeding the £44 million earned in AMP6.