Steve fraser managing director fbe presentation

FBE Lancashire United Utilities presentation 18th November 2015

1. Copyright © United Utilities Water Limited 2015
Steve Fraser
Managing Director
UU’s current investment plans for
AMP6
1

2. About
United Utilities?
•We’re the North West’s water company.
Hot showers, cups of tea, toilet flushes…
Every morning, our core product gets used by
7 million customers
•FTSE 100 – based in Warrington, Cheshire
•Our investment programme for the next five
years is focused on delivering value for all our
stakeholders, with a strong focus on delivering
a great service to all our customers
•Customers’ bills won’t rise above inflation for
the rest of the decade

3. United Utilities
Our approach to AMP6

4. 32%
Fewer
interruptions to
water supply
4,700
Fewer properties
flooded
+50
Beaches with
cleaner water
1.8m
Low income
customers
helped by 2020
21
Customer
Challenge
Groups
250k
Customers
engaged
5%
Reduction off bills
on average
Customers
favour‘steady
state’ over
improvements
Ongoing customer stakeholder panels holding
companies to
account
£44bn
Total investment
2015-20
Customer’s priorities underpin AMP6 business plans

5. What’s changed in AMP6?
•We need to deliver our promises to
customers and regulators
•We need to deliver capital projects to time,
cost and quality
•We need to deliver cost savings in line with
initiatives
•Customer billing and cash collection in line
with targets
•We need to gain new out-of-area
customers and value add services contracts

6. AMP6 delivery model
•Specifying outcomes
•Earlier contractor involvement in Design & Build contracts
•Engineering effort focused on root cause of asset problems
and technical support for day to day operational activities
•Standardising an NEC3 suite of contracts with a strong
technical and commercial assurance
Supply Chain
Mott
MacDonald
Bentley
CH2M Hill and
VolkerStevin
Balfour
Beatty and
MWH
Laing O’Rourke,
Imtech and
Atkins
Delivery partners work load split between direct
allocations (40%) and mini competition (60%)
Construction Delivery Partners
Engineering service provider (ESP)
Alliance
Alliance Partner for networks extended for second AMP cycle
Competitive market place
Competitive market tenders forecast to undertake 30% of capital projects (>£250k).

7. AMP6 delivery model
Working with suppliers

8. AMP6
Davyhulme modernisation project
New FTFT
Inlet Works
Refurbish
existing Inlet
Works
De-comm
ASP1
Refurbish
part ASP2
ASP3
Project key facts
•Project LBE and sanction £187.5m
•Design & Build contract awarded to Laing O’Rourke/Imtech JV
•Project currently in week 22 of 181 and on schedule
•Project completion July 2018
•First tender issued requiring “Design for Manufacture and Assembly” as
primary solution
•Full BIM solution aligned to new operating model
Drivers for Change
Environmental Legislation
•Reduction in ammonia consent from March
2015. Operational mitigation plan in place
until the Modernisation project complete in
2018
Growing Population
•Population increase from just over 1m to 1.3m
forecast by 2036
Ageing Assets
•Main treatment processes due significant
investment over the next 25 years

9. AMP6
West Cumbria Pipeline Project

10. AMP6
Blackpool outfall pipe
Drivers for Change
•Bathing water standards continue to keep getting tougher
Project key facts
•New outfall pipe, weighing 2,000 tonnes and twice the length of the old one, to allow excess
storm water to disperse further out to sea
•Installation of giant underwater storm water tank and pumping station at AnchorsholmePark
•Total investment of £125m along the Fylde coast to increase the capacity of the town’s sewer
system

11. Copyright © United Utilities Water Limited 2015
Q & A
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