UU flags up £25m hit after water safety incident

THE water quality incident which affected more than 300,000 Lancashire homes has cost United Utilities £25m in compensation.

In its trading update, the Warrington –based company has also reported restructuring expenses of around £5m, including costs relating to business retail market reform, incurred in the first half of the year.

A statement said: “Customer satisfaction is a key area of focus and so we were very disappointed that a significant water quality incident occurred this summer in parts of the Lancashire region, and we are continuing to investigate the cause.

“Public health is a fundamental priority and we issued a ‘boil water’ notice to more 300,000 properties, representing approximately 10% of our customer base.
 
“We deployed extensive additional resources, including enhanced UV treatment, to restore the water quality to the high standards expected as quickly as possible, and full service was restored in early September.
 
“We recognise the inconvenience this placed on many of our customers and are very grateful for their patience and understanding. We are in the process of paying compensation.”

Otherwise, the company said current trading is in line with the group’s expectations for the six months ending September 30.