Asset Management Plan period – the five-year regulatory price control periods since privatisation. AMP6 was the sixth AMP since privatisation and ran from 1 April 2015 to 31 March 2020. AMP7 is the seventh AMP since privatisation and will run from 1 April 2020 to 31 March 2025.
Customer measure of experience. This measure of customer satisfaction for AMP7 replaces SIM as a measure of the service customers receive from their water company.
Formerly the Carbon Disclosure Project, CDP through its environmental disclosure system supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.
Consumer Price Index/Consumer Price Index including Housing. CPIH is the UK government's preferred measure of inflation, and will be used by Ofwat as its primary inflation index in AMP7. CPI is the closest proxy for CPIH for which debt and derivatives are available in the financial markets.
Consumer Council for Water, an independent body that represents customers' interests relating to price, service and value for money as well as conducting independent research and investigating customers' complaints relating to water quality.
Developer measure of experience – new measure of developer satisfaction for AMP7.
Department for Environment, Food & Rural Affairs, a UK government department responsible for setting policies and regulations on environmental, food and rural issues. Defra sets the overall water and sewerage policy framework in England, including setting standards and drafting legislation.
Drinking Water Inspectorate. The DWI regulates the quality of the drinking water that we supply and ensures its safety and compliance with Water Quality Regulations.
Environment Agency. The EA is the principal adviser to the UK Government and main body set up to protect and improve the environment in England and Wales. They work in collaboration with other organisations to reduce flood risk, promote sustainable development, and secure environmental and social benefits.
Environmental, social and governance – the three central factors in measuring the sustainability and societal impact of an investment in a company.
Fast-track category
Our business plan was graded in Ofwat's Initial Assessment of Plans, leading to a faster timeline during the price review and rewarded with an additional 0.11 per cent allowed return above the base allowance for non-fast track companies.
Final determination – the regulatory settlement. Ofwat gives each company to deliver for each five-year regulatory price control period.
K factor
Percentage annual increase or decrease in allowed regulatory revenue before inflation.
Key performance indicators. We measure our performance against a range of operational and financial KPIs plus a variety of other metrics.
Outcome delivery incentives – the outperformance payments and penalties associated with operational performance against agreed regulatory targets.
Independent economic regulator for the water and wastewater sector in England and Wales, responsible for protecting customers' interests while ensuring water companies finance and conduct their functions effectively.
The Price Review process for AMP7, concluded in December 2019.
Price Review
The process through which each water and wastewater company submits a business plan for the next five-year period, and Ofwat sets the price and service package it must deliver.
Priority Services
A scheme aimed at customers who may need additional support with their water and wastewater services due to age, disability, illness, or other vulnerable circumstances.
Retail Price Index – until recently (see CPIH) this was the UK Government's preferred measure of inflation, and prior to AMP7 RPI was used by Ofwat as its primary inflation index to calculate inflation of revenue and RCV.
Service Incentive Mechanism, Ofwat's measure of the service customers experience from their water company, which will be replaced by C-MeX in AMP7.
Science, Technology, Engineering and Mathematics – technical fields in which we need to avoid a shortage of skills in the long term.
Systems Thinking
Our industry-leading approach to the way we operate our network and assets, which is one of our competitive advantages and a key value driver.
Task Force on Climate-related Financial Disclosures – set up to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.
Total expenditure – this comprises operating costs (opex), infrastructure renewals expenditure (IRE) and capital expenditure (capex).
United Utilities Group PLC, the listed group company.
United Utilities Water Limited, the regulated entity.
The independent customer challenge group whose aim is to ensure customers are at the heart of our business planning.