Water bills 'to be reduced slightly'

Water bills to be reduced by just £3 by 2015 watchdog Ofwat announces
Water bills to be reduced by just £3 by 2015 watchdog Ofwat announces

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Thursday, 26, Nov 2009 10:44

By Sarah Garrod.

Water bills will be reduced a small amount over the next five years, the watchdog Ofwat has said today.

The watchdog has published its final decision on what water and sewerage companies can charge customers between 2010 and 2015; saying bills should be ten per cent lower than the companies have asked for.

Ofwat said the average bill across England and Wales will decrease by £3 to £340 by 2015, before inflation is considered.

Regina Finn, Ofwat chief executive officer said: "People can shop around for the best deal on many things, but not water. Our job is to do this for them.

"We've scrutinised every pound in the companies' plans to make sure they deliver what customers want. At a fair price.

"We're allowing companies to invest more than ever before, £22 billion. We're making sure it's invested in the right place, at the right time, for the right price. Everyone will see real benefits from these proposals."

However, the Consumer Council for Water has said while the Ofwat report is good news for customers, it is concerned the watchdog has "eased off" on water companies' efficiency targets, which could cause higher bills for some customers.

They also noted that the reduction of £3 was an average, and in some areas prices would actually rise, in some places by more than ten per cent.

Dame Yve Buckland, chair of the Consumer Council for Water, said: "The overall deal will be acceptable to many customers who told us that they wanted bills to remain flat, and over England and Wales, average bills are actually going down by one per cent.

"However, we would give the deal a seven out of ten because Ofwat has eased off on the companies, meaning that some customers will face higher bills.

"There is also a risk that bills may creep up over this five years with further work to be done for the environment, and other costs.

"Even though prices are generally flat, there is still an issue of affordability for many water customers. When we ask them 'are your water bills affordable?' one in five customers tells us no. We are concerned that this reduction in prices still isn’t sufficient to solve the problem, so we will continue to press government to provide better support for such households."

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