PN 03/05: Bill increases necessary to safeguard essential services
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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
321(1)
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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