United Utilities Group (LSE:UU.) said its financial framework and guidance for 2026/27 remain unchanged ahead of its interim results on 12 November, with the water and wastewater company continuing to target regulatory returns of 10-11% under the current five-year regulatory period known as AMP8.
Operational performance is in line with expectations, and the company remains on track to deliver approximately £2 billion of capital investment in 2026/27 and £11.5 billion across the full AMP8 period, supporting compound growth in its asset base of around 10%.
United Utilities also confirmed it remains on track to access approximately £2.5 billion of investment through the AMP8 re-opener mechanism, a process allowing additional funding requests mid-period.
Within that, the company has submitted its response to Ofwat's 2026 Cost Change Draft Decision, seeking support for around £1 billion of investment to strengthen network resilience and add water and wastewater capacity across the North West.
The response includes revised funding arrangements for industrial growth projects, with £191 million of strategic infrastructure progressing through a gated mechanism and a further £79 million of asset-specific infrastructure to be funded directly, an approach intended to align investment with confirmed demand.
United Utilities said it looks forward to continued engagement with Ofwat ahead of the regulator's Final Decision in December.
News Intelligence what this means for the company
United Utilities has resubmitted its case to Ofwat for £1 billion in additional mid-period funding to strengthen North West network resilience and capacity, with the regulator's final decision due in December. The company's 2026/27 financial framework and 10–11% regulatory return target remain unchanged, and it continues tracking £2 billion of capital spend in 2026/27 and £11.5 billion across the full AMP8 period. This is a routine regulatory submission within the established re-opener process; the outcome hinges on Ofwat's December decision.
The submission does not alter United Utilities' stated guidance or capital trajectory. Approval of the £1 billion would represent incremental upside to the £11.5 billion AMP8 envelope already disclosed; rejection would not materially change the baseline case. The real catalyst is Ofwat's December ruling.
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