Executive Summary
United Utilites PLC (LON:UU) was formed in 1995 as a result of the merger of North West Water and Norweb. It provides water and sewage services to around 3.2m customer premises in North West England, having sold its electricity and gas business in 2000. United Utilities also operates in competitive utility markets in the UK and overseas. The company is focused on its core skills of managing water, wastewater, electricity and gas networks, with the aim of being a world class operator of utility infrastructure. In addition to its North West water operation, the company also manages water and wastewater networks in Wales, Southern England, and operates wastewater treatment facilities in Scotland, manages the electricity distribution network in the North West and the gas distribution network for the North of England. It also provides specialist waste treatment, multi-utility metering and connections services to business customers.
Company History
Key milestones in the company's history are provided below.
- 1995: United Utilities is formed through the merger between North West Water and Norweb
- 2000: the company pulls out of the retail energy market, selling Norweb Energi to TXU, but retains the electricity distribution and telecommunications businesses
- 2001: Norweb and North West Water are rebranded United Utilities
- 2002: the company wins a major metering contract with British Gas Trading
- 2005: it acquires a 15% stake in Northern Gas Networks from National Grid Transco and wins the contract to operate the North of England gas network
- 2006: the company divests its back office function management company, Vertex
Current Events
Recent events in the company's history are provided below.
- 2007: the company's electricity distribution assets are sold to Electricity North West for £1,782m, but it retains the contract to manage the assets to 2015. In the same year, the company divests its stake in Thus Group (LON:THUS) to focus on core utility skills
- 2008: the metering contract with British Gas is extended.
Business Model
The company's strategy is to focus on its core skills of managing water, wastewater, electricity and gas networks to create a world class operator of utility infrastructure. The business is structured into two main areas, regulated activity and unregulated activity.
Regulated activity
- Manages water and wastewater serving 3.2m customers in North West England
- Manages electricity networks in the North West
- Manages water and wastewater networks in Wales nad Southern England
- Manages wastewater treatment facilities…
