Edmund Reid's questions to United Utilities Group (UUGRY) leadership • H1 2016
Question
Edmund Reid from Lazarus asked about the specific changes being implemented to reduce retail costs and whether the company is comfortable with the glide path set by Ofwat for these cost reductions.
Answer
CEO Steve Mogford acknowledged that the retail cost allowance is a significant challenge, even with the glide path. He detailed that the company is investing in new customer relationship management (CRM) systems over the next 18 months to improve efficiency and the customer experience. He also noted that regional deprivation remains a key cost driver that is largely outside the company's control.