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PN 03/05 | 10 March 2005 |
Bill increases necessary to safeguard essential services |
Water bills now being sent to customers will protect the progress that water companies have made on improving services and the environment, Ofwat said today.
The water regulator has now approved tariff schemes for all 22 water companies and published details on its website, www.ofwat.gov.uk A table is attached showing the consequences for average bills.
The new charges, which come into force on 1 April, will see bills in England and Wales going up on average by nearly 12%, including inflation. The tariffs are in line with Ofwat's price limits announced in December.
The increases are necessary to reflect the higher day-to-day running costs of delivering water and sewerage services, and the build-up of costs since the last review in 1999. The revenues raised will also enable water companies to begin to deliver a substantial capital investment programme – around £16.8 billion over the five years to 2010 - to:- Provide safe, reliable water supplies and sewage disposal;
- Make further improvements to drinking water quality and the environment sought by Ministers; and
- Achieve significant reductions in sewer flooding.
Philip Fletcher, Director General of Water Services, said:
"I realise that all bill increases are unwelcome. But I can assure customers that bills are going up by no more than is necessary to enable water companies to continue to provide the high-quality water and sewerage services that customers require."
Despite the increases for 2005-06, many households' water and sewerage bills will still be lower in real terms than they were in 1999 – before Ofwat introduced a 12% reduction in bills from April 2000.
Notes to Editors:
1. The Director General of Water Services is the economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them.
2. The leaflet 'Water and Sewerage Bills 2005-06' is now available on the Ofwat website at www.ofwat.gov.uk It will be published on 15 March and will be available from the Ofwat Library on 0121 625 1373.
3. MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442
Out of hours enquiries to pager: 08700 555 500 water 503/509.
Table 1 - A comparison of average household bills charged by the water and sewerage companies for 2005-06 and in 1999-2000
| Water and sewerage companies | Average bill
For 2005-06
£ | Average bill for 1999-2000
(expressed in today's prices)
£ |
| Anglian | 304 | 322 |
| Dŵr Cymru | | 346 |
| United Utilities | 289 | 282 |
| Northumbrian (incl Essex & Suffolk) | 266 | 287 |
| Severn Trent | 253 | 261 |
| South West | 400 | 407 |
| Southern | 299 | 314 |
| Thames | 252 | 239 |
| Wessex | 306 | 315 |
| Yorkshire | 264 | 279 |
(1) This reflects the rebate given to customers in 2005-06 (£18 for a customer taking both water and sewerage services from Dŵr Cymru).
Table 2 – Average household bills for water and sewerage 2005-06 (including inflation)
In April 2005, household customers will see an average increase in their water and sewerage bills of 11.8%
 | Water | Sewerage | Total change |
| COMPANY | Average bill for |  | Average bill for |  |  |  |
 | 2004-05 | 2005-06 | change | 2004-05 | 2005-06 | change |  |  |
 | £ | £ | £ | £ | £ | £ | £ | % |
| WATER AND SEWERAGE COMPANIES |
| Anglian Water | 119 | 134 | 15 | 166 | 170 | 4 | 19 | 6.6 |
| Dŵr Cymru(1) | 123 | 142 | 19 | 163 | 179 | 15 | 34 | 12.0 |
| Northumbrian Water |  |  |  |  |  |  |  |  |
| Northumbrian Water | 101 | 111 | 10 | 131 | 142 | 11 | 21 | 9.0 |
| Essex & Suffolk Water | 130 | 143 | 14 |  |  |  | 14 | 10.6 |
| Severn Trent Water | 116 | 129 | 13 | 105 | 123 | 18 | 31 | 14.1 |
| South West Water | 126 | 146 | 20 | 230 | 254 | 25 | 45 | 12.6 |
| Southern Water | 92 | 107 | 15 | 166 | 192 | 25 | 40 | 15.6 |
| Thames Water | 112 | 150 | 38 | 96 | 102 | 6 | 44 | 21.0 |
| United Utilities Water | 133 | 136 | 3 | 139 | 154 | 14 | 17 | 6.3 |
| Wessex Water | 126 | 141 | 15 | 150 | 165 | 15 | 30 | 10.9 |
| Yorkshire Water | 117 | 126 | 10 | 127 | 138 | 11 | 21 | 8.5 |
| WATER ONLY COMPANIES |
| Bournemouth & W Hampshire | 107 | 128 | 21 |  |  |  | 21 | 19.8 |
| Bristol Water | 109 | 128 | 19 |  |  |  | 19 | 17.9 |
| Cambridge Water | 91 | 104 | 13 |  |  |  | 13 | 14.3 |
| Dee Valley Water | 106 | 115 | 8 |  |  |  | 8 | 7.7 |
| Folkestone & Dover Water | 140 | 153 | 13 |  |  |  | 13 | 9.5 |
| Mid Kent Water | 129 | 145 | 16 |  |  |  | 16 | 12.1 |
| Portsmouth Water | 77 | 79 | 2 |  |  |  | 2 | 3.0 |
| South East Water | 128 | 153 | 25 |  |  |  | 25 | 19.2 |
| South Staffordshire Water | 89 | 104 | 15 |  |  |  | 15 | 16.5 |
| Sutton & East Surrey Water | 125 | 144 | 19 |  |  |  | 19 | 15.4 |
| Tendring Hundred Water | 159 | 163 | 4 |  |  |  | 4 | 2.3 |
| Three Valleys Water | 119 | 141 | 22 |  |  |  | 22 | 18.2 |
| INDUSTRY AVERAGE | 117 | 134 | 17 | 132 | 144 | 12 | 29 | 11.8 |
Note: - Bills for 2004-05 and 2005-06 are estimates based on provisional and forecast data provided by each company.
- 2004-05 refers to the year ending 31 March 2005. 2005-06 refers to the year ending 31 March 2006.
- To calculate the total average bill, you must add the average water bill to the average sewerage bill.
- Your water may be provided by a different company than your sewerage service.
(1) The average bills for Dŵr Cymru reflect the rebate given to customers in both 2004-05 and 2005-06 (£9 and £18 respectively for a customer taking both water and sewerage services from Dŵr Cymru).
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