United Utilities Group (LON: UU.), the FTSE 100-listed parent of the regulated water and wastewater utility for North West England, said today that its financial framework for 2026/27 and its AMP8 capital plan remain on track. The company confirmed it is targeting regulatory returns of 10-11% across AMP8, the five-year regulatory period, with operational performance in line with expectations and its capital programme progressing as planned.
United Utilities remains on track to deliver about £2bn of capital investment in 2026/27 and £11.5bn across AMP8, supporting roughly 10% compound growth in its regulatory asset base. Interim results for 2026/27 are due on the 12th of November. Shares closed at 1398p on Thursday, within a 52-week range of roughly 1091.5p to 1457p.
Separately, United Utilities disclosed its formal response to Ofwat’s 2026 Cost Change Draft Decision. Ofwat, the water sector’s economic regulator, had trimmed the company’s original £1.068bn submission to £958m in its draft ruling.
United Utilities’ response narrows that gap but does not close it, requesting £1.026bn in total. The table below sets out the two contested categories, in 2022/23 prices, across the AMP8 period.
| Category (£m, AMP8 total) | Company Submission | Ofwat Draft Decision | Company Response |
|---|---|---|---|
| Growth | 637 | 560 | 615 |
| Asset health | 339 | 305 | 318 |
| 2026 Cost Change (Total) | 1,068 | 958 | 1,026 |
Ofwat’s own restated figures reflect adjustments made through its query process, according to the regulator’s document.
To bridge the difference, United Utilities proposed a split funding mechanism for industrial growth projects: £191m of strategic infrastructure investment via a gated mechanism, released only as growth materialises, and £79m of asset-specific infrastructure funded directly.
The company frames this as part of a wider ambition to access roughly £2.5bn of investment through the AMP8 re-opener mechanism, a provision that lets regulated water companies seek additional funding mid-period for costs not foreseen at the original price review. If approved in full, its Draft Decision response would represent about £1.2bn of that £2.5bn total.
United Utilities said it looks forward to continued engagement with Ofwat ahead of the Final Decision, due in December, which stands as the next dated catalyst for resolving the gap between the two figures.