United Utilities Share Discussion Threads

[beardmore] 20/11/2012 09:32

I don't think so, it's closer to home than that.
Unfortunately utility providers have become a political football. Look at 'Dave's' latest intervention into fuel-charging tariffs. Fuel and water markets face intervention by politicians wanting to win public approval.
For all that, I feel that UU is worth buying although waiting for it to hit 600p would be sensible.

[gbb483] 19/11/2012 23:59

I wonder if this :

EUR 7,000,000,000
Euro Medium Term Note Programme

is the reason for the drop these last few days - the market knew it was coming.

[daveofdevon] 18/11/2012 04:03

The report you refer to is, I assume, the trading statement. In that report they say that the interim results will be reported on November 28th and that is where I would expect to see details of the next dividend and the associated ex date.

Last year they went XD on 14th Dec.

[thuja2] 17/11/2012 18:21

Anyone know when the ex date is, I can't find it in the report ! many thanks.

[redartbmud] 12/11/2012 17:15

gbb

Keep your powder dry for the time being, it hasn't stopped falling yet - IMHO.

red

[gbb483] 12/11/2012 17:01

Looks like more buying opportunites on the horizon.

[redartbmud] 07/11/2012 14:49

DAVE

Similar to you I hold RSAB, STAB, BT. 5.75% GE Cap, more risky + ords LLPC, LLPE + NG., SSE, & a few other high yielders.
Applied for SMP bond.

Got to chase the rate.

red

[daveofdevon] 07/11/2012 10:56

Yep - Income is a problem, it has driven me into UU. NG. and SSE and I keep thinking I should take profits but then what?

My solution has been to move about 25% of my portfolio into pref shares, I have AV.B, BBYB, CPBB, GACA, and STAB which gives me a tax paid yield of 7.26% and will be at risk if inflation gets going.

Then I have my 2 largest income generators tucked up in an ISA (because they are channel island gross payers) which are the PFI funds HICL and JLIF these are about as safe as I can get because they have a degree of inflation protection and yield about 5.5%

The rest is in old faithfuls GSK VOD etc

[redartbmud] 07/11/2012 10:23

Sadly utilities are "controlled" by regulation.
The government should take them back into public ownership if it wants to treat them as a private bank to shore up government revenues, except for the fact that it can't afford to do so.
The period of regulation is too short IMHO. As soon as they get started on projects under new regulation they have to think about the next round of negotiations. It takes up too much time and deflects from effective management of the business. Any success over and above the tight constarints imposed is jumped on next time round.
As an example National Grid is being encouraged to take on ridiculous amounts of debt in order to run the business. I top sliced at about £7.05p because I can see it becoming an issue in future. If profitability falls then income will flow towards interest repayment instead of shareholder returns.
Unfortunatley, where else do you invest for income at present?

[daveofdevon] 07/11/2012 08:46

Three areas of concern have been enough to create unease :

1. The regulator has started consultation for the next period starting in 2015 which always scares people.

2. The threat a Competition Commission looking at the whole business and talk that the Govt wants customers to be able to switch suppliers as easily as they can for electricity.

3. An analysts report (sorry can't remember who) that stated that the whole sector was overvalued with too much debt and zero growth prospects.

That makes for enough gloom to do the trick !

[london calling] 06/11/2012 09:26

not been watching this the last few days. anyone tell me the reason for the big fall. thanks

[beardmore] 02/11/2012 11:39

Similar rumours of a takeover bid floated around Kelda for a while, after many months it happened. Utilities with a predictable income and therefore reliable dividends appeal to pension funds and (of course) infrastructure specialists. Spelman has introduced big uncertainty here with this new wheeze of hers and it looks to me that UU is now dropping back to reflect the new political risk. Unfortunately many of these utilities have become political footballs. Look at Dave and his comments about simplifying fuel bills.
I'd buy back in around a yield of 5% which translates to 640 to 650 pence.

[redartbmud] 02/11/2012 10:03

Thinking back several days this stock spiked as rumours circulated about a possible bid. I wonder what happened to that?

[beardmore] 02/11/2012 08:56

So right, Redart - but then they have this unshakeable belief that they are born to govern.

[beardmore] 01/11/2012 16:16

Trying to, Redartbmud, trying to.

[redartbmud] 01/11/2012 14:58

Trouble is that these people are running the Country!

[thuja2] 01/11/2012 14:35

United utilities owns all this where are these new companies going to get their water from unless they buy it of UU.
---

United Utilities Group PLC (UU) (LSE: UU.), the United Kingdom's largest listed water company, was founded in 1995 as a result of the merger of North West Water and NORWEB.

The group manages the regulated water and waste water network in North West England - which includes Cumbria, Cheshire, Greater Manchester, Lancashire and Merseyside which have a combined population of nearly 7 million.[2] The United Utilities Group was the distribution network operator for the North West until 2010 when the electricity subsidiary was sold to Electricity North West. United Utilities headquarters are in Warrington and the company has 9,000 employees. Its shares are listed on the London Stock Exchange and the FTSE 100 Index

[beardmore] 01/11/2012 12:29

Spelman was the daft cow that wanted to sell off the forests. 'Nuff said.

[redartbmud] 01/11/2012 09:22

thuja2

For ambitious and achievable read half-baked and loony.

red

[thuja2] 01/11/2012 09:07

This is the government proposals I cannot see that firms will rush to supply water in the same way as electricity and gas, or that it will benefit the customer since the difference in price will be negligable as I see it.

Government sets out ambitious reform of the water industry
Plans to reform the water industry were published in Parliament today as the Government seeks to slash red tape, drive innovation and open the market to new companies.

Under the proposals, which have been published for pre-legislative scrutiny, all businesses and public sector bodies in England will be able to switch their water and sewerage suppliers, allowing them to obtain more competitive prices, improve their efficiency and tender for services better suited to meet their individual needs.

Evidence suggests that opening up the water market and allowing businesses to switch supplier could deliver benefits to the economy of £2 billion over 30 years. In Scotland, after similar reforms were introduced, the public sector alone is set to save around £20 million over the next three years.

Secretary of State for Environment, Caroline Spelman said,

"This draft Bill will create a modern customer focused water industry and for the first time all businesses and other organisations will be able to shop around for their water and sewerage suppliers.

"By slashing red tape we will also stimulate a market for new water resources and incentivise more water recycling.

"This will ensure that the water industry continues to provide an affordable and clean water supply which is essential for the nation's economic growth while at the same time protecting the environment for future generations."

Businesses, charities and public organisations with multiple sites will also be able to receive just one combined water and sewerage bill for all their offices and buildings across England and Scotland.

Regina Finn, Ofwat Chief Executive Officer said:

"This Bill is good for the customer, the economy and the environment. As well as, for the first time, giving choice to 1.2 million businesses and other organisations, the Bill is expected to benefit the economy by almost £2 billion. The reforms will help the country become better at valuing, managing and using our water. Now is the time for all players to step up to the plate to deliver the vision of the Bill – including the industry, regulators, consumer bodies and Government."

The draft legislation will remove current regulations which act as a barrier to new entrants wishing to enter into the water and sewerage market. Currently any new entrant needs to negotiate with up to 21 water companies before entering the market. Under these changes there will be no need to do this as Ofwat will set out standard terms and conditions for companies to follow. It will also encourage existing companies to look at offering alternative supplies and services.

The legislation will also make it easier for bulk water trading within the industry, allowing water companies to work more closely to find long term solutions to water security issues.

Increased competition in the wholesale market will give water companies an incentive to come up with cheaper, more sustainable solutions to sourcing water.

The Bill will also make the costs of connecting new developments to the water and sewerage system more transparent. Developers will benefit from the extension of environmental permits to include water abstraction licensing and flood defence consents – reducing the red tape around environmental regulation.

Notes

New arrangements are being put in place to drive forward implementation of the package of reforms of the water sector set out in the Water White Paper and detailed in this draft Bill. A high-level group, including Government, the regulators, market participants and customers will lead this work.

The Government wishes to set an ambitious but achievable goal for establishing a new market for retail water and sewerage services to non domestic customers in England that will work effectively with the market in Scotland. A realistic target date for retail market opening is likely to be April 2017, but this will be confirmed after work through the new high level group to develop a roadmap.

[ridicule] 31/10/2012 18:41

Comment from today's Daily Telegraph Market Report!! " United Utilities brought up the rear on the blue-chip index with a decline of 19p to 695p. The shares fell amid concerns about the impact of proposals from the regulator Ofwat on company licences".

Does anyone know anything about this? With a further 18p decline today I would like to know more?

[wad collector] 31/10/2012 13:44

Who knows?
But if they drift down further I still have more shares than if had just sat on the holding a month ago.And like you , am happy to sit and milk the yield if they don't come back up in a hurry.
Ironically , if I had put 100% of my portfolio into UU over the yrs I would be better off than I am now .But suspect the same is true for many of us.

[darias] 31/10/2012 12:31

Well done.

But since we have an average price of £6:26 I reckon the time to buy is when they drop further. I just wonder whether you will hold onto that gain.

[wad collector] 31/10/2012 11:13

I just bought back the holding I sold at 719 a month ago for 684.That is 4% more after dealing costs - almost the same as the annual dividend. The risk seems worth it to me.