UK Water Bills to Rise

From The Press Association

Water and sewerage bills in England and Wales will rise to an average £312, industry regulator Ofwat confirmed today.

The 7% rise will add an extra £20 to the annual bill for an average home, and is more than twice the current 2.7% rate of inflation.

Customers in the south-west will be worst hit as South West Water has announced a 16% price hike, making the average annual bill £650. People with water meters will see their average bill go up 12% to £378.

The lowest rise, 5%, is from Severn Trent Water, which supplies 3.5m homes in the Midlands. Average households will pay £283 in 2007-08.

Ofwat’s chief executive, Regina Finn, said: “We recognise that any bill increases are going to be unwelcome. But these are essential to ensure that customers continue to receive high quality, secure water and sewerage services both now and in the future.

“The increases are also partly driven by significant environmental improvements.”

The water watchdog, the Consumer Council for Water, said the rises will worry those on low incomes.

Chairwoman, Dame Yve Buckland, said: “Although water costs each household less than a pound a day on average, many consumers on low and fixed incomes will struggle to keep up with these bill rises.

“Consumers will also struggle to understand the relationship between higher bills, increases in company profits, last summer’s water restrictions and acknowledged recent failures in customer service.”

Dame Buckland added: “We have already started to think about the next price review, which will set water and sewerage price limits for 2010-15. We are not convinced consumers can see recognisable benefits in return for the bill rises that they have faced since 2005, and believe that consumers’ priorities should come first next time.”

Ofwat said the increases include 3.9% for inflation plus a 3.1% rise in real terms.

There is good news for customers of Tendring Hundred Water Services, which has announced a 3% price cut to compensate for overcharging on the past two annual bills.

The company, which supplies 65,000 homes and 5,000 businesses in north-east Essex, is dropping its annual average bill for water from £165 to £161.