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Water for the North West

Our regulation Strong performance in early part of AMP7 We operate in 5-year regulatory cycles called Asset Management Periods (AMPS) We recently entered the seventh five-year period since privatisation (AMP7 - running from April 2020 to March 2025) Our economic regulator, Ofwat, sets the price, service and incentive package we must deliver in each of these five-year periods There are four main areas in which companies can outperform by delivering a superior level of performance and/or doing so at a lower cost: Total expenditure (totex) Financing performance Outcome Delivery Incentives (ODIs) Customer satisfaction (measured using Ofwat's C-Mex assessment in AMP7) We have transformed our performance in recent years and we exited AMP6 operating at the upper quartile across a range of metrics We were fast-tracked through the most recent price review (PR19) and given one of the lowest cost challenges in the sector by Ofwat We reinvested £130 million of AMP6 outperformance, targeting key performance areas giving us a flying start to AMP7 Investor presentation 6
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