PN 10/05: Ofwat report outlines bill changes for customers

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PN 10/05	19 May 2005
Ofwat report outlines bill changes for customers

A new report published today shows how the price limits Ofwat set last December translate into charges for customers.

The 'Tariff structure and charges 2005-06' report shows how the water regulator has reviewed charges schemes for each company to ensure that tariffs are fair, non-discriminatory and cost-reflective. Overall household bills are rising by an average 11.8%, including inflation, in the year running from 1 April 2005.

The report also highlights some of the actions taken by Ofwat during the last twelve months to safeguard the interests of water customers. Thus:

United Utilities dropped proposals to charge metered customers a fee if they exercised their right to revert to being billed on the basis of the rateable value of their home. Customers have a right to revert to an unmetered charge (under the Water Industry Act 1999) within the first 12 months of switching to a meter.

South Staffordshire Water and Three Valleys Water withdrew proposals to impose an additional charge on customers whose accounts were passed on to debt collection agencies when they were overdue. Ofwat believed that these plans would simply increase the level of debt of customers who were having genuine difficulties in paying their bill.

Northumbrian Water agreed to phase in its proposed new method of charging commercial customers for surface water drainage to avoid unacceptably large bill increases for some customers in a single year.

The report also shows how price setting has ensured a fairer balance between bills for customers who do not have a water meter compared with those who do have a meter.

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 'Tariff structure and charges 2005-06' report is available on our website www.ofwat.gov.uk or from our library on 0121 625 1373.

MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442
Out of hours enquiries to 07778 160806. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk

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