Utility Week

UTILITY WEEK | JULY 2021 | 11 Interview U nited Utilities' first year of AMP7 has been "a good year against the odds", according to chief executive Steve Mogford, who has guided the company to become a sector leader in the decade he's been with the firm. The business is doing a lot right. Employee engage- ment stands at 89 per cent, which is above high- performing norms for UK companies. It recorded no serious pollution incidents for the second year, and even the Ofwat chairman visited to see how other companies could replicate its turnaround in the next price review. As one of three companies fast-tracked for their PR19 business plans, UU had a head start on planning for the AMP thanks to earlier certainty in what was a complex price review. Looking ahead to the next round of regula- tory controls, Mogford advocates for a more straightfor- ward approach this time around. "Simplifying the process will be hugely beneficial to save time and money, which customers ultimately pay for," he says. "The whole principle of simplification is great and something [Ofwat interim chief executive] David Black has spoken about before. [Chairman] Jonson Cox said AMP7 is the pinnacle of regulatory complexity, so now David can deliver on simplification." He questions whether all companies need equal regu- latory attention if their performance is strong across the board or if the price review could be an opportunity for those companies that need more attention on particular areas to receive it. "We're upper quartile on both business and domestic customer performance, earning rewards on C-Mex and D-Mex, doing a lot to support customers, and we've brought forward around £900 million of investment to stimulate the economy with green recovery," Mogford says. "When you look at all that you ask, do you really need to haul companies over the coals with plans? Or should Ofwat be spending more time with the compa- nies that are struggling and understanding what they need to do to improve?" Mogford says that during his visit to the company's headquarters, Cox asked "what we have done to go from bottom to top over a couple of AMPs and can we use price reviews to help those companies that really are struggling". "At the end of the day Ofwat – and the companies – all want the sector to be good and to perform well," Mogford says. "Perhaps a price review should focus on that, and if companies are focusing on responsible capitalism, then perhaps the price reviews should be simpler." Reaching the highs for United Utilities has taken focus on areas that needed improvement and honesty about what work is required. "It's taken a huge investment in integrity and transparency, of saying it how it is. A huge focus on the customer. We've got all these assets and we're a process industry working extremely hard to do what we have to do, but at the end of the day the measure of success is whether the customers actually feel like they're getting a decent service, so we have had a ruthless focus on customer and satisfaction." continued overleaf

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