WATER watchdogs are urging customers to become the main stakeholders in privatised giant United Utilities.

Shareholders at the firm's annual meeting were told that benefits from the recent acquisition of Norweb were greater than expected.

Ofwat, the independent water watchdog, said as the company grew into a major international organisation customers had the opportunity to become the number one stakeholder.

Ofwat North West Customer Service Committee chairman Anthony Goldstone said: "Customers have had a difficult year with the hosepipe ban and problems of service.

"Maybe this is an opportunity for them to become the main focus of United Utilities' strategy and for them to have a new appreciation of the company.

"I want to have the company in the North West leading the industry,

"It should be telling customers, as well as shareholders, that they are going to get immediate benefits as a result of the merger.

"This will be a great step forward."

United Utilities is the holding company for Norweb and North West Water.

It recently announced pre-tax profits of £272 million, with North West Water's profits rising by 4.6 per cent to £364 million.

A total dividend of £32.66p per share was announced for shareholders, an increase of 27.8 per cent.

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