The best service to customers

Wholesale outcome delivery incentive (ODI) composite

Definition

Net reward/(penalty) accrued across United Utilities' 19 wholesale financial ODIs, more detail of which can be found in our Annual Performance Report.

Target

End the 2015–20 regulatory period with around £30 million cumulative net ODI reward.

Link to bonus/LTP

Bonus – direct

LTP – indirect

Status

Achieved/ confident of achieving target

Performance

2018/19: £19.2 million reward (cumulative £21.4 million reward)

2017/18: £7.0 million penalty (cumulative £2.2 million reward)

2016/17: £6.7 million reward (cumulative £9.2 million reward)

2015/16: £2.5 million reward

Service incentive mechanism (SIM) – qualitative

Definition

Ofwat-derived index based on quarterly customer satisfaction surveys, measuring the absolute and relative performance of the 18 water companies. Each company receives a score in the range of zero to five, with five being the best attainable score.

Target

To move towards the upper quartile in the medium term.

Link to bonus/LTP

Bonus – direct

LTP – direct

Status

Achieved/ confident of achieving target

Performance

Sector worst

Sector best

Service incentive mechanism (SIM) – quantitative

Definition

Ofwat-derived composite index based on the number of customer contacts, assessed by type, measuring the absolute and relative performance of the 18 water companies. Each company receives a SIM point total, where the lowest score represents the best performance.

Target

To move towards the upper quartile in the medium term.

Link to bonus/LTP

Bonus – direct

LTP – direct

Status

Achieved/ confident of achieving target

Performance *

Sector worst

Sector best

* Sector best and worst figures for quantitative SIM are not yet available for 2018/19

At the lowest sustainable cost

Total expenditure (totex) outperformance

Definition

Progress to date on delivering our promises to customers within the cumulative 2015–20 wholesale totex final determination allowance.

Target

To outperform Ofwat's final determination totex allowance by £100 million over the 2015–20 regulatory period.

Link to bonus/LTP

Bonus – indirect

LTP – indirect

Status

Achieved/ confident of achieving target

Performance

2015–20: Confident of outperforming the final determination allowance by £100 million over the 2015–20 regulatory period

Totex was a new measure for the 2015–20 period, hence no prior years' comparators

Financing outperformance

Definition

Progress to date on financing expenditure outperformance secured versus Ofwat's industry allowed cost of debt of 2.59 per cent real over the 2015–20 period.

Target

To beat Ofwat's industry allowed cost of debt.

Link to bonus/LTP

LTP – indirect

Status

Achieved/ confident of achieving target

Performance

2015–20: On track to beat Ofwat allowance

2010–15: Exceeded our £300 million target outperformance

Household retail cost to serve

Definition

Cost to serve in our household retail business compared with Ofwat's revenue allowance (including margin).

Target

To minimise costs compared with Ofwat's revenue allowance.

Link to bonus/LTP

Bonus – indirect

LTP – indirect

Status

Achieved/ confident of achieving target

Performance

2018/19: £5 million outperformance

2017/18: £9 million outperformance

2016/17: £14 million outperformance

2015/16: £10 million outperformance

In a responsible manner

Leakage – average annual leakage

Definition

Average annual water leakage from our network quantified in megalitres (Ml) per day.

Target

To meet our regulatory leakage target of 462.65 Ml per day for each year in the 2015–20 regulatory period, as set by Ofwat.

Link to bonus/LTP

Bonus – indirect

Status

Achieved/ confident of achieving target

Performance*

2018/19: Met target

2017/18: Met target

2016/17: Met target

2015/16: Met target

2014/15: Met target

* Final figure for leakage will be reported in our Annual Performance Report, available on our website in July

Environment Agency performance assessment

Definition

Composite assessment produced by the Environment Agency, measuring the absolute and relative performance of the 10 water and wastewater companies across a broad range of areas, including pollution.

Target

To be a first quartile performer (i.e. at least 4th) on a consistent basis.

Link to bonus/LTP

Bonus – indirect

Status

Achieved/ confident of achieving target

Performance*

2017: Joint 1st

2016: Joint 1st

2015: Joint 2nd

2014: 2nd

2013: 2nd

* Assessment for the 2017 calendar year was published in July 2018 and is the most recent available.

Dow Jones Sustainability Index rating

Definition

Independent rating awarded using sustainability metrics covering economic, environmental, social and governance performance.

Target

To retain 'World Class' rating each year

Status

Achieved/ confident of achieving target

Performance

2018/19: 'World Class'

2017/18: 'World Class'

2016/17: 'World Class'

2015/16: 'World Class'

2014/15: 'World Class'

Business insight:

Working together to support those in need

Business insight:

Pioneering UV LED treatment technology

Business insight:

Co-ordinating our efforts to fight moorland fires