United Utilities keeps eye on hosepipe ban after the rain

United Utilities, Britain's largest listed water firm, today said it was "monitoring" its hosepipe ban in the north of England as it reported trading in line with expectations.

United said recent increases in rainfall had helped improve water resource levels but it was sticking to its drought plan for now.

It added it was experiencing "ongoing revenue and cost pressures" after Ofwat's water review cut prices.

The company, Britain's largest listed water utility, placed the ban on most of its customers in north-west England this month, saying 2010 had been the driest year since its rainfall records began 74 years ago.

Like peer Severn Trent this week, United Utilities said the effects of government changes to corporation tax and capital allowances would be broadly neutral over the current five-year regulatory period.

Shares in the company, which have gained almost 14% so far this year, were up 0.7% at 569 pence in early trading, among the top British blue chip gainers.