Water prices to rise
Consumers are facing an average 18 per cent rise in the cost of water by 2009.
The water regulator, Ofwat, announced today that it was approving a significant rise, which will take the average bill to £295 a year by 2009, but it would be requiring the water companies to make improvements.
Water companies had been arguing for a 29 per cent increase to allow them to carry out maintenance on their infrastructure and environmental projects.
The rises will affect different regions to a greater or lesser extent, with rises of 25 per cent hitting customers of Southern Water, South West Water and Wessex Water.
The increase will be spent on improving and maintaining sewers, pipes and treatment works, Ofwat said.
Additionally 3000 environmental schemes, aimed at improving water quality in rivers and coastal waters, will be enacted, along with 500 studies on future environmental protection plans.
The head of Ofwat, Phillip Fletcher, admitted that the increases would be unwelcome to consumers, but said: “These decisions strike the right balance. They will enable water companies to meet the needs of customers and the environment whilst continuing to deliver a safe and reliable service. The price limits are as high as they need to be but no higher.
“We have challenged the companies’ costs to ensure customers continue to receive value for money from their water and sewerage services. This means that by 2009 customers will be paying on average only around seven per cent more, before inflation, than they were in 1999.”
Consumers groups though are worried at the impact – particularly on elderly and vulnerable consumers. The chairman of WaterVoice, Maurice Terry, said: “This is bad news for the millions of water customers who will find these increases neither affordable nor acceptable.
“The Government must act immediately to ensure that customers on low and fixed incomes receive effective help to pay their water bills, through the mainstream tax credits and benefits system.”
Although this is the end of the official price review, the water companies have until February 1st to appeal.
