UK's United Utilities reports 10 percent rise in profit

(Reuters) - British water utility United Utilities Group Plc (UU.L) on Wednesday reported a 10 percent rise in profit for the first half of the year, helped by regulatory changes in how utilities charge customers as well as property sales and lower costs.

Britain's water regulator, OFWAT, which sets prices each company can charge customers, has introduced separate price controls for different services offered by the water industry from the one price control used earlier.

United Utilities, which supplies and treats water in north-western UK, said underlying operating profit rose to 344 million pounds from 312.5 million pounds a year earlier.

The company said revenue rose 2.7 percent to 876 million pounds in the six months ending Sept. 30.

United Utilities said total regulatory capital investment was 394 million pounds in the first half of the year, and it remained on track to spent 800 million pounds for the full year.

United Utilities said infrastructure renewals expenditure (IRE) was 70 million pounds in the first half.

Ofwat uses incentives to push companies to offer better services to customers, improve their operations and cut down on costs.

The company also proposed an interim dividend of 13.24 pence per ordinary share, an increase of 2.2 per cent.

(Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty)