United Utilities and South West Water hike dividends amid bill increases
United Utilities and South West Water hike dividends amid bill increases
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Water companies United Utilities and South West Water have said they will raise dividends to shareholders as they confirmed consumer bill increases of 32% and 23%, respectively, over the coming five years. United Utilities, which serves about seven million customers around Manchester and Liverpool, and South West Water’s parent company Pennon said they had agreed the bill increases negotiated with regulator Ofwat last year.
The regulator’s decision, made in December, means the typical billpayer across the UK will see their payments rise by an average of £86 this April and was met with outrage from consumer groups. The increases come amid high levels of sewage spills and underinvestment in pipes, sewers and reservoirs over the last decade.
The companies have said they need to increase bills to pay for improvements to their infrastructure to reduce pollution incidents. Despite this, United Utilities and Pennon also said they will raise dividend payouts to shareholders this year so that they increase in line with inflation.
United Utilities’ boss Louise Beardmore said the rise in bills would raise £13 billion to invest in its infrastructure across the North West. She said the total was the “largest investment in water and wastewater infrastructure in over 100 years”.
