Further misery for householders as water firms plan 22 per cent bill rise
Tuesday 12 August 2008
Latest in Business News
On Facebook
Consumers face year after year of inflation busting rises in water bills after companies submitted plans for increases of up to 22 per cent over a five-year period to 2015.
As households face higher bills for mortgages, food, energy and petrol, the water companies intend to hike bills by up to £100 a year to pay for new pipes to reduce leakage.
Southern Water is planning the steepest hike, with average bills rising by 21 per cent from £352 to £426. Thames Water is seeking to raise bills by 16 per cent after inflation, from £280 to £329 a year. In the North-west, United Utilities customers face having to pay £390 a year by 2015, a rise of 11 per cent above inflation.
Other companies planning rises include Anglian (3.6 per cent above inflation), Northumbrian (2.8 per cent above inflation) and Yorkshire (1.6 per cent above inflation).
There was relief for customers of Wessex and Welsh Water, where bills will rise in line with inflation.
The water companies in England and Wales submitted the rises to the regulator Ofwat as part of their five-year business plans for 2010-2015. Over the coming year, Ofwat will study the proposals before deciding whether to cap the rises in November 2009. The companies say the hikes will fund billions of pounds of investment as well as covering higher energy costs, tighter environmental and water quality standards, and work needed to protect assets from natural disasters such as flooding.
Consumer groups fear that some customers will be unable to afford such large bills during a squeeze on household budgets.
In the past year, energy bills have risen by 40 per cent and further rises are expected this winter. Mortgage rates have also risen, while water and council tax bills have jumped by four and six per cent respectively. Unleaded petrol is up 19 per cent. Shopping website mysupermarket.co.uk's basket of 24 grocery items has jumped by 27 per cent in the past 12 months, it said yesterday.
Ofwat figures show that water bills have almost trebled since privatisation in 1989, up 260 per cent from £120 to £312. At the same time, the profits of the companies have leapt – up by 28 per cent in the past five years alone, from £1.95bn in 2002/03 for the top 10 companies to £2.59bn in 2006/07.
Thames Water, which supplies 13 million customers across London and south east England, plans to pump £6.5bn into water and sewerage services. Justifying the price rises, chief executive, David Owens, said: "Thames' customers have enjoyed the lowest bills in the industry for many years, but we now need to make essential investment to secure their services for the future."
The Consumer Council for Water said that research showed most customers were not willing to pay inflation-busting price increases, while also seeking reduced leakage.
In a statement, the watchdog said: "At first glance, some water companies, such as Dwr Cymru Welsh Water, Wessex Water, Severn Trent Water, and Yorkshire Water seem to have taken this to heart and said that they can continue to meet their obligations to deliver a safe, reliable service, provide further benefits to consumers, and do this without raising prices much above the rate of inflation, if at all.
"Other water companies such as Southern Water, Sutton and East Surrey, Bristol Water, South East Water, Folkestone and Dover, and Cambridge Water, have proposed bill increases of over 20 per cent above the rate of inflation."
The statement added: "The Consumer Council for Water believes that many customers will be concerned with price rises on this scale, especially in light of other household bill increases. Customers will want to see the justification for any proposed price increases, to understand exactly what they will get for the extra money."
Ofwat has said customers with low water usage would save money by having a meter fitted.
- 1 Pete Doherty: I was a bit unhinged
- 2 The Sun on Sunday to launch soon, says Rupert Murdoch
- 3 Vatican told to pay taxes as Italy tackles budget crisis
- 4 Greeks rage at erosion of sovereignty while leaders haggle over deal
- 5 Prehistoric cybermen? Sardinia's lost warriors rise from the dust
- 6 Facebook hacker is jailed for eight months
- 7 Blizzards to batter UK again
- 1 WikiLeaks takes aim at an unlikely new victim: Unesco
- 2 Prehistoric cybermen? Sardinia's lost warriors rise from the dust
- 3 Employers reject jobs scheme that's all work and no pay
- 4 Robert Fisk: I've lost a good, brave, honourable friend
- 5 Vatican told to pay taxes as Italy tackles budget crisis
- 6 Administrators set to meet with Rangers squad
- 7 Pete Doherty: I was a bit unhinged
- 8 'My 10 days at an Eton summer school was a real shock to the system'
- 9 Spotify: 1 million plays, £108 return
- 10 The artist vandalising advertising with poetry
Free trial of new Independent iPad app
Get your daily dose of the best of British journalism, sponsored by American Airlines
Win a family adventure for four in the new Subaru XV
Enjoy a three-nights family adventure at Slaley Hall Resort, Northumberland courtesy to Subaru XV
Amazing restaurant offers
Three glasses of free champagne and a special menu at 46 top London restaurants.
Latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Career Services
Day In a Page
Inside the tiny town that will topple Sarkozy
Claire Foy: Criticism, tumours and embarrassing sex scenes
Wilderness and wildlife in Australia’s Top End
48 Hours: Marrakech




Comments