United Utilities Group PLC (LSE:UU.) shares picked up as the water supplier promised to keep the dividend taps turned on as it agreed to regulator Ofwat’s new five-year pricing plan.
In a statement, the North West water supplier said it would “continue to grow the dividend by CPIH inflation, in line with our long-term dividend policy”.
Like its peers, United has been slated for dumping sewage and causing pollution and the utility has promised to spend £13 billion over the 2025-30 review period to stop the pumping of waste into areas such as the Lake District.
Customers are paying for the infrastructure upgrades through a 32% bill hike over the five years.
United Utilities said that despite the sewage spillages it has continued to deliver a strong operating performance in its third quarter and expects to be rewarded with a higher operational bonus from Ofwat (ODI).
“We maintain our FY25 financial guidance and remain on track to deliver net ODI rewards higher than last year's £34.5 million,” said the statement.
Shares rose 1.6% to 995p.