Auditel Consultant:
Jack Pokoj

Cheaper Water Bills on the horizon?

23 Jul 2009 | Filed under: Utilities

According to the BBC, water companies’ bids to raise prices between 2010 and 2015 have been snubbed by regulator Ofwat, which wants average household bills to fall instead. Taking out the impact of inflation, the regulator wants the typical bill in England and Wales cut by 4%.

According to the regulator, the proposals will allow water companies to invest £21bn in improving services over the next five years. Every five years, Ofwat sets limits on prices that water companies in England and Wales can charge. There will now be a consultation period until a final decision from the regulator in November. The water companies have an opportunity to renegotiate in September and they can also appeal to the Competition Commission. The new bills will then come into effect in April 2010.

Ofwat’s plans demand that bills are 12%, or £45, lower by 2015 than the average that the companies had asked for. The biggest difference between the companies plans and the Ofwat proposals was at Thames Water (15%) among the water and sewerage companies, and at Sutton and East Surrey Water (27%) for the water-only providers.