Shares in utility companies surged today after industry regulator Ofwat allowed firms to increase water bills by more than originally proposed.
United Utilities was among the beneficiaries and helped the FTSE 100 Index to stay in positive territory despite a sharp drop in oil stocks.
In the first hour of business, the FTSE stood 3.2 points stronger at 4738.9.
Oil majors Shell and BP proved a drag on the market after crude prices fell heavily in the wake of a larger expected increase in inventories.
BP slumped 11p to 521p and Shell eased 4.5p to 436.5p.
Cairn Energy also fell 19p to 1505p while gas group BG was off 4.5p at 357.25p.
The mood in the rest of the market was more positive with a number of stocks with exposure to high oil prices on the way up.
They included British Airways, which gained 3.5p to 229.5p.
Among the water companies, North West firm United Utilities rose by almost 4% or 22p to 593.5p.
Fellow blue-chip company Severn Trent gained 23.5p to 928p.
Among second-tier utilities, Northumbrian Water rose 7p to 157p, AWG cheered 24,5p to 769p and Yorkshire Water owner Kelda lifted 11p to 554.5p.
The proposed 18% rise in prices for the next five years is more than the 13% signalled by the regulator in August.
References: EGi News 02/12/04
