The average household water and sewerage bill across England and Wales is set to rise by 1.1 per cent above inflation in 2009/10. The rises for this year will come into effect from tomorrow and apply until 31 March 2010.
In 2004, Ofwat set limits on the prices water and sewerage companies could charge customers between 2005 – 10. Ofwat will finalise the new limits on prices for the period 2010 – 2015 in November 2009.
Regina Finn, Ofwat Chief Executive Officer said:
"We needed to make some tough decisions back in 2004 when we set prices. Further investment was vital, but we needed to strike a balance with keeping bills down. Our work has kept customers' bills around £100 lower than they would otherwise have been.
"No one wants to see bills increasing, particularly in tough economic times. Yet over the last 20 years we have made sure that this essential investment has delivered very real benefits for us all.
"Our polluted rivers and beaches meant we were viewed as the dirty man of Europe. Now we have more than 120 Blue Flag beaches. The Mersey was known as the most polluted river in Western Europe but now is home to breeding salmon. Leakage has fallen by over a third since 1995, while the quality of our drinking water is now up there with the best in the world."
The average increase in household bills in 2009/10 is 1.1 per cent plus inflation at 3 per cent. This means the average household water and sewerage bill across England and Wales will rise by approximately 4.1% or £13 to reach £342 in 2009/10. However, there are variations in the new prices being charged by individual companies. Southern Water customers’ are facing the biggest increase of 5.6% on their water and sewerage bills, while in comparison South West Water customers will see an increase of 0.9%.
Regina Finn continued:"We have made significant steps forward over the last 20 years. Yet the challenges of the future are different to those of the past."We are due to finalise prices for the 2010-15 period at the end of this year and we will make sure that consumers get a fair deal."
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