United Utilities Wins Nod for Growth Spending

Ofwat has approved a draft allowance of around 975 million pounds, unlocking growth capacity across the North West.

15 Aug 2026

United Utilities has secured a draft decision from Ofwat approving allowances of roughly 975 million pounds, keeping the company on track to deliver around 2.5 billion pounds of investment through the annualised AMP8 re-opener mechanism. Published on 13 August, the decision supports most of the company's first cost change submission under Ofwat's framework, which lets water companies seek additional funding when new needs emerge mid period.

The money is aimed at resilience and additional water and wastewater capacity across the North West, backing government ambitions on housing, digital infrastructure and climate policy. United Utilities had originally sought approval for around 1.4 billion pounds of incremental investment, including new infrastructure for data centres, non potable water supply to a clean energy cluster, and treatment capacity upgrades across dozens of sites supporting tens of thousands of new homes.

Chief Executive Louise Beardmore said the mechanism gives the company room to deliver infrastructure the North West needs for growth, calling it proof that Ofwat's cost change process can enable timely investment while protecting customers. Ofwat has requested further evidence on a limited number of projects, with United Utilities due to respond by 24 September ahead of a final decision expected in December.

The company's broader financial framework remains unchanged, including roughly 11.5 billion pounds of total capital investment across AMP8 and a regulatory capital value expected to grow around 10 percent annually to approximately 25 billion pounds by 2030. The draft approval fits a wider pattern across England's water sector, where capital keeps flowing toward capacity as utilities respond to housing targets, industrial demand and tightening environmental rules.