United Utilities, a water company serving seven million customers in the northwest of England, has reported a significant increase in profit. The company recorded £335.7m in underlying operating profits for the first half of this year, a 23% increase from the previous year.
As United Utilities seeks to raise customer bills by 32%, the proposed average annual bill would increase to £584 by 2030. This push for higher bills is aimed at making them among the most expensive in England and Wales. Since April 2023, bills have already seen increases of 6.4% and then 7.9%, contributing to a rise in revenue to over £1.08bn from £975.4m in 2023.
While profit before tax reached £140.6m and after-tax profit topped £103.1m for the first six months of the fiscal year, both figures were lower than the previous year. Additionally, two executives received bonus and benefits payments totaling £1.416m on top of £1.128m in base pay, according to company filings analyzed by the Liberal Democrats. This is a decrease from the previous year when three executives were given £1.6m in base pay and £2.456m in bonuses and benefits.
Despite facing scrutiny from the water regulator Ofwat for not meeting obligations to minimize pollution, United Utilities was one of just three companies to receive the Environment Agency’s top four-star performance ranking. In a year marked by record sewage outflows into waterways, the company acknowledged concerns about environmental health and wastewater system operations, including combined sewer overflows.
In response to the investigation, United Utilities stated, “We understand and share people’s concerns about the health of the environment and the operation of wastewater systems, including combined sewer overflows.” The company’s commitment to addressing these concerns while navigating the push for higher customer bills underscores the complex challenges faced by utility companies in balancing financial sustainability with environmental stewardship.