United Utilities Group PLC (LSE:UU.) unveiled an inflation-busting dividend rise as it negotiates with regulator Ofwat for more money to pay for sewer upgrades to stop spillages.
Environmentalists have slammed United for regularly dumping sewage into Lake Windermere.
It also faces legal action by the Manchester Ship Canal over dumping and in July was served with an enforcement action notice due to its pollution levels.
In today’s statement, Louise Beardmore, chief executive, said United was making progress at reducing spills from storm overflows, one of the major causes of dumping by water suppliers.
“By 2030, we will deliver improvements at more than 1,100 overflows across the North West,” she added.
United has put forward a plan to Ofwat to upgrade its pipes by spending £950 million to £1.1 billion a year until 2030 but to do that it will put prices up by 21%.
Originally, UU wanted a 26% rise but that was reduced by the regulator.
Revenues in the half year to end September 2024 rose by 10.9% to £1.08 billion with operating profit 39% higher at £333 million.
Pretax profits dropped 12% to £140.6 million as finance costs more than doubled to £193 million.
The interim dividend rises by 4.2% to 17.28p with net debt up 6% at £9.05 billion.