PN 05/07: Ofwat confirms water bill increases for 2007- 08
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PN 05/07

28 February 2007
Ofwat confirms water bill increases for 2007- 08

Household water and sewerage bills in England and Wales are to rise by an average of 7%, Ofwat confirmed today. This comprises an increase of 3.1% in real terms, plus 3.9% for inflation. The average household water and sewerage bill for 2007-08 will increase by around £20 to £312.

The impact of new charges, which come into effect on 1 April 2007, will vary for individual household customers depending on the company that supplies them and whether or not they have a water meter.

Ofwat Chief Executive Regina Finn said:

"We recognise that any bill increases are going to be unwelcome. But these increases are essential to ensure that customers continue to receive high quality, secure water and sewerage services both now and in the future. The increases are also partly driven by significant environmental improvements. Without the work that Ofwat has done to keep prices down customers' bills would have been higher."

Average bill increases, including inflation, will vary for each water company, from 5.7% (£15) for customers of Severn Trent Water to 10.1% (£44) for South West Water customers.

Following Ofwat's intervention, Tendring Hundred is reducing its charges in 2007-08 to compensate customers who paid more than was necessary in 2005-06 and 2006-07 because of an accounting error made by the company.

Ofwat welcomes companies' initiatives to help customers who are struggling to pay their bills. Wessex Water is introducing a new tariff aimed at customers in financial difficulty who are struggling to pay their bills. South West Water is to launch a scheme which will aim to help 7,500 customers to pay their bills over the next three years. Any customer who is having difficulty paying their bills should contact their water company to see how it can help.

Some customers, especially those with low water use living in homes with a high rateable value, would pay less if they had a water meter. Customers who think they may save should ask their company for further information on the effect that switching to a meter will have on their bills.

Ofwat will publish its annual 'Water and sewerage bills 2007-08' leaflet, which sets out average and typical bills for each company, on its website today.

Notes to Editors:
1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition.
2. The actual increase in bills includes inflation of 3.87% (November 2006 RPI)
3. The leaflet 'Water and sewerage bills 2007-08' will be available on the Ofwat website at www.ofwat.gov.uk and from the Ofwat library 0121 625 1373.
4. To help customers understand why bills have gone up, we have produced individual company briefing sheets, which are now available on our website
5. In 2005-06, just over 13,000 households received assistance under the Vulnerable Groups Scheme – 37% more than the previous year. We are working with Defra, CCWater and the industry to improve customer awareness of the scheme.
6. Media enquiries to Ofwat Press Office on: 0121 625 1496/1442/1416. Out-of-hours enquiries on 0121 625 1300.
7. Attached table – Average household bills for 2007-08 – shows the average across all customers for each company.


Average household bills 2006-07 and 2007-08
Company
Average water
bill for
Average sewerage
bill for
Total change
2006-07
2007-08
Change
2006-07
2007-08
Change
£
£
£
£
£
£
£
%
Water and sewerage companies
Anglian Water (1)
141
154
13
177
191
14
28
8.8
Dŵr Cymru (2)
147
155
8
191
208
17
25
7.4
Northumbrian Water:
North East
117
126
9
149
159
10
19
7.0
Essex & Suffolk
150
160
10
10
7.0
Severn Trent Water
134
141
7
130
138
8
15
5.7
South West Water
169
193
24
269
290
21
44
10.1
Southern Water
110
118
7
199
211
12
20
6.3
Thames Water
154
166
11
105
109
4
15
6.0
United Utilities
145
154
10
164
181
17
27
8.6
Wessex Water
161
181
21
175
186
11
32
9.4
Yorkshire Water
134
142
8
147
158
11
19
6.9
Water only companies
Bournemouth & West Hampshire Water
129
134
5
4.0
Bristol Water
135
141
7
5.0
Cambridge Water
106
111
5
4.7
Dee Valley Water
114
118
4
3.6
Folkestone & Dover Water
160
170
10
6.1
Mid Kent Water
144
154
11
7.4
Portsmouth Water
80
85
5
6.1
South East Water
156
167
11
6.8
South Staffordshire Water
105
113
8
7.8
Sutton & East Surrey Water
149
156
7
4.8
Tendring Hundred Water
165
161
-5
-2.8
Three Valleys Water
144
150
6
4.5
Industry average
140
150
10
151
162
11
20
7.0


Notes:
1. The percentage increase in the overall average bill for Anglian Water is greater, by around 2%, than the typical increases that customers will see. This is because the overall average increase is distorted by the fact that Anglian Water has withdrawn its charges to unoccupied unfurnished properties.
2. The average bills for Dŵr Cymru reflect rebates of ú9.50 and ú10.00 for each service in 2006-07 and 2007-08 respectively from the company.
3. The totals may not equal the sum of water and sewerage services due to rounding.



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