Westminster Labour Councillors have written to Ofwat to urge the regulator to reject Thames Water’s application to increase prices by 8% for 2014/15.

Thames Water has cited land costs for the Tideway Tunnel and rising levels of bad debt as key reasons for applying to Ofwat for price increases, which would be on top of the 3% above inflation that it has increased bills by over the period 2010 to 2015.

Councillor Paul Dimoldenberg, Leader of the Labour Group said:

“Many Westminster residents are in the middle of a cost-of-living crisis and paying utility bills is more of a struggle every month for many people. Real wages have fallen for 36 consecutive months. Water is one of the biggest outgoing faced by every household in Westminster and residents simply can’t afford yet another above-inflation price hike. Residents are being asked to pay more while Thames Water is making record breaking profits. Ofwat should reject this application.”

In a letter to Ofwat Chief Executive Regina Finn, Dimoldenberg said he found Thames Water’s application “staggering, particularly as they offer no social tariffs to those struggling to pay their bills.”

Dimoldenberg asks Finn to take into consideration Thames Water’s profits and the cost-of-living crisis in Westminster.

“I find it beyond belief that Thames Water are asking hard working Londoners to pay even more for their water bills at the same time as posting the biggest profits in the company’s history,” he said.

Sadiq Khan, Member of Parliament for Tooting and Shadow London Minister, added his concern about the price increases. He said:

“On a bill as unavoidable as water, hiking bills above inflation in the middle of a cost-of-living crisis while posting record breaking profits is frankly outrageous.”