United Utilities targets same dividend growth as SSE

Water company United Utilities has targeted dividend growth of at least inflation as recorded by the Retail Price Index going forward, matching its peer firm SSE.

The utility firm claimed that its projected dividend total for the 2014/15 financial year was 37.7p and that it is targeting growth of at least RPI inflation. It will also target from that base every year until the 2019/20 financial year.

These figures parallel SSE, which claimed on Monday that it will continue to expect an increase in the full-year dividend for the current financial year to at least equal RPI inflation.

United Utilities said: "This determination delivers value for all of our stakeholders, with a strong focus on customer benefits, including reduced bills in 2015/16, alongside continued high levels of investment which will provide further environmental benefits and a significant contribution to the regional economy.

"Household customers are also set to benefit from below inflation growth in average bills for the decade through to 2020.”

The firm has also confirmed that it will enforce Ofwat’s final determination on price controls between 1 April 2015 and 31 March 2020.