United Utilities Accepts Ofwat Revised Licence Proposals

UNITED UTILITIES GROUP PLC - United Utilities Accepts Ofwat Revised Licence Proposals

PR Newswire

London, January 17

United Utilities Group PLC

18 January 2013

UNITED UTILITIES ACCEPTS OFWAT'S REVISED LICENCE PROPOSALS

After careful consideration, United Utilities Water PLC (UUW) is pleased toadvise that it has accepted the revised `Section 13' licence modificationproposals from Ofwat, which were published on 21 December 2012.

This follows extensive, constructive discussions between Ofwat, UUW and otherwater companies. The Board of UUW considers that the revised licence amendmentshave reduced uncertainty for investors and customers, compared with theprevious proposals issued on 26 October 2012.

These revised licence proposals provide for the changes required to facilitatethe forthcoming price review in 2014 (PR14) and set a framework for progressiveevolution of regulation in the sector. In particular, these proposals focus onthe expected introduction of separate price controls at PR14 for the retail andwholesale segments of the value chain. Any further changes necessary forregulatory evolution which require licence amendment would be subject tosubsequent `Section 13' notices.

We welcome this progress and will continue to actively engage with Ofwat andour other stakeholders through the PR14 process.

United Utilities contacts:

Ed Orlebar / Michelle Clarke, Tulchan Communications +44 (0) 20 7353 4200