Water industry regulator Ofwat said this morning that the average household water and sewerage bill in England and Wales is forecast to increase by 5.7%, or about £20 - above the current inflation rate of 5.2%.

This will mean an average bill of £376 in 2012/13.

In 2009 Ofwat made its decision on how much water and sewerage companies could charge customers between 2010 –15. Across England and Wales average bills are set to remain broadly in line with inflation by 2015.

Regina Finn, Ofwat Chief Executive Officer said:

“When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. We challenged companies hard to deliver this. Our decision meant that, before inflation, average bills would remain broadly stable between 2010 -15.

“We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills, and this is driving these rises.

“We will make sure customers get value for money. Companies are investing £22 billion by 2015 – more than £935 for every property in England and Wales. This will deliver benefits to us all – from continuing to improve reliability of supplies to cleaner rivers and beaches.

“If companies don’t deliver on their investment promises, we will take action.”

The bill changes for this year will come into effect on 1 April 2012 and apply until 31 March 2013. The impact of the new charges will vary for individual household customers depending on the company that supplies them and whether or not they have a water meter.

The average figure masks some significant differences between charges made by individual companies. About half the companies are making above-inflation price increases, while the other half are delivering the opposite. Southern Water customers, for example, will see the biggest increase among the water and sewerage companies with an 8.2% hike taking their bill to £416.

However, they are not the most expensive – at £543 South West Water customers’ bill for their water and sewerage services is the most expensive in the country. The Government recently confirmed that it was proposing to provide help for South West Water customers with their bills.

Amongst the water-only companies, Bristol Water customers will see the highest rate of increase – 8.8% will take their bill to £181. Again, this is not the most expensive in monetary terms – South East Water and Cholderton take equal first place with a bill of £204. The highest charge for water is in fact made by Wessex Water – which provides both water and sewerage services to its customers – with a water bill of £234.

Tables below set out the bills which come into effect on 1 April 2012 and apply until 31 March 2013, together with the % increase by each company. Source: Ofwat

Water and sewerage companies
Anglian	£423	5.4%
Dŵr Cymru	£427	3.8%
Northumbrian (ex Essex & Suffolk)	£352	5.1%
Essex & Suffolk (water only)		5.9%
Severn Trent	£325	5.0%
South West	£543	4.7%
Southern	£416	8.2%
Thames	£339	6.7%
United Utilities	£395	4.7%
Wessex	£455	6.0%
Yorkshire	£361	6.1%

Water only companies
Bristol	£181	8.8%
Cambridge	£127	5.4%
Cholderton	£204	3.6%
Dee Valley	£145	5.4%
Portsmouth	£94	3.3%
Sembcorp Bournemouth	£153	3.5%
South East	£204	4.6%
South Staffordshire	£140	6.4%
Sutton & East Surrey	£181	7.3%
Veolia Central	£174	1.8%
Veolia East	£173	2.9%
Veolia Southeast	£188	3.3%