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PN 14/04 | 30 March 2004 |
April's water bills still lower than in 1999 |
Water bills in England and Wales are to go up by an average of three per cent, excluding inflation, from Thursday.
Despite the increase for 2004-05, most people's water and sewerage bills will continue to be lower on average, in real terms, than they were five years ago.
New charges, which begin on 1 April, will see Thames Water customers with the lowest average bill at £208 and customers of South West Water paying the most at £361. But in 1999 average bills for the two companies, taking inflation into account, would have been £231 and £394 respectively.
Ofwat's initial average 12 per cent reduction in price limits at the 1999 review means that in today's prices customers are still paying less than they were in 1999-2000. A comparison of water and sewerage charges shows that while the average household bill for 2004-05 will be £249, five years ago it was £275 in today's prices – more than ten per cent higher.
Tony Smith, director of competition and consumer affairs at Ofwat, said: "We must allow water companies enough money to keep on providing high quality water services. But we will continue to ensure that customers of these monopoly companies do not have to pay any more than is necessary."
Ofwat will publish next week its 'Water and Sewerage Bills 2004-05' leaflet, giving details of average price increases for all domestic water customers and explaining how the bills are calculated.
The water regulator is now engaged in setting price limits for the next five-year period, starting in April 2005. He has warned that bills will to have to increase to pay for maintaining current services and making improvements mainly to the environment and the companies' water and sewerage networks.
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. WaterVoice represents customers' interests.
2. The leaflet 'Water and Sewerage Bills 2004-05' will be available from the Ofwat library on 0121 625 1373 or from the Ofwat website at www.ofwat.gov.uk from Monday, 5 April.
3. Comparison of average household bills charged by water and sewerage companies for 2004-2005 and in 1999-2000:
| Water and sewerage companies | Average bill for 2004-05
£
| Average bill for 1999-2000
(expressed in 2004-05 prices) £ |
| Anglian Water | 289 | 311 |
| Dwr Cymru | 286 | 334 |
| Northumbrian Water1 | 233 | 269 |
| Severn Trent | 221 | 252 |
| South West Water | 361 | 394 |
| Southern Water | 259 | 304 |
| Thames Water | 208 | 231 |
| United Utilities | 271 | 273 |
| Wessex Water | 275 | 305 |
| Yorkshire Water | 243 | 270 |
| Industry average | 249 | 275 |
1 Average bill for Northumbrian Water customers only (bills for customers of Essex and Suffolk Water will be different).
MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON:
0121 625 1416/1496/1442
Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk
| Table 1: 2004-05 Average household bills for water |
| In April 2004, household customers will see an average increase in their water bills of 3% (excluding inflation). |
| Since privatisation in 1989, average household bills for water have increased by 24.6% (excluding inflation). |
 | | |
| Company | 1989/90 – 2004/05 | 2003/04 – 2004/05 | 2003/04 | 2004/05 |
| Water and sewerage companies | (excluding inflation) 2,3 | (excluding inflation) 2,3 | (excluding inflation) 3 | £ | £ |
| Anglian Water Services Ltd | 11.6 | 1.6 | 4.2 | 115 | 120 |
| Dwr Cymru Cyfyngedig | -3.1 | -1.5 | 1.0 | 122 | 123 |
| Northumbrian Water Ltd: |
| - Northumbrian Water | 14.8 | 9.4 | 12.2 | 90 | 101 |
| - Essex & Suffolk Water | 34.3 | 9.5 | 12.2 | 115 | 130 |
| Severn Trent Water Ltd | 48.1 | 1.2 | 3.7 | 112 | 116 |
| South West Water Ltd | 22.1 | 3.1 | 5.7 | 121 | 128 |
| Southern Water Services Ltd | 8.9 | -1.4 | 1.1 | 91 | 92 |
| Thames Water Utilities Ltd | 29.1 | 2.2 | 4.8 | 107 | 112 |
| United Utilities Water plc | 55.0 | 11.5 | 14.4 | 116 | 133 |
| Wessex Water Services Ltd | 22.1 | 2.2 | 4.8 | 120 | 125 |
| Yorkshire Water Services Ltd: |
| - Yorkshire Water Services | 11.7 | 3.0 | 5.6 | 111 | 117 |
| - York Waterworks | -3.8 | -12.6 | -10.4 | 95 | 85 |
| Water only companies | | | | | |
| Bournemouth & W Hampshire Water plc | 22.7 | 2.0 | 4.6 | 100 | 104 |
| Bristol Water plc | 10.7 | -2.3 | 0.2 | 109 | 109 |
| Cambridge Water plc | 2.3 | -0.9 | 1.6 | 93 | 94 |
| Dee Valley Water plc | -9.6 | -1.0 | 1.5 | 105 | 107 |
| Folkestone & Dover Water Services Ltd | 53.2 | 1.0 | 3.6 | 138 | 143 |
| Mid Kent Water plc | 3.6 | -0.5 | 2.0 | 128 | 130 |
| Portsmouth Water plc | 2.7 | -0.6 | 1.9 | 76 | 77 |
| South East Water plc | 8.9 | 0.4 | 3.0 | 126 | 130 |
| South Staffordshire Water plc | 18.3 | 1.9 | 4.5 | 88 | 92 |
| Sutton & East Surrey Water plc | 7.9 | -0.7 | 1.8 | 123 | 125 |
| Tendring Hundred Water Services Ltd | 65.6 | 2.7 | 5.3 | 154 | 162 |
| Three Valleys Water plc: |
| - Three Valleys Water | 22.7 | -0.3 | 2.2 | 115 | 118 |
| - North Surrey Water | 39.8 | -5.4 | -3.0 | 112 | 109 |
| Industry average | 24.6 | 3.0 | 5.6 | 111 | 117 |
|
| 1 Percentage changes between 2003-04 and 2004-05 are calculated from average bills expressed in pounds and pence. |
| 2 Percentage increases exclude the effect of inflation. Inflation, as measured by the Retail Price Index, increased by 66.1% between November 1988 and November 2003 and 2.53% between November 2002 and November 2003. |
| 3 Percentage changes and level of bills for 2003-04 and 2004-05 are estimates based on provisional and forecast data provided by each company. |
| Table 2: 2004-05 Average household bills for sewerage |
| In April 2004, household customers will see an average increase to their sewerage bills of 2.9% (excluding inflation). |
| Since privatisation in 1989, average household bills for sewerage have increased by 25% (excluding inflation). |
| | |
| Company | 1989-90 - 2004-05 | 2003-04 - 2004-05 | 2003-04 | 2004-05 |
| Water and sewerage companies | (excluding inflation) 1,2 | | | £ | £ |
| Anglian Water Services Ltd | 10.8 | 2.2 | 4.7 | 162 | 169 |
| Dwr Cymru Cyfyngedig | 36.8 | 2.3 | 4.9 | 156 | 163 |
| Northumbrian Water Ltd | 44.1 | 10.0 | 12.8 | 117 | 131 |
| Severn Trent Water Ltd | 6.4 | 1.6 | 4.2 | 101 | 105 |
| South West Water Ltd | 67.9 | 2.7 | 5.3 | 222 | 233 |
| Southern Water Services Ltd | 36.4 | 1.3 | 3.8 | 161 | 167 |
| Thames Water Utilities Ltd | 18.3 | -0.9 | 1.6 | 95 | 97 |
| United Utilities Water plc | 41.1 | 8.6 | 11.3 | 124 | 139 |
| Wessex Water Services Ltd | 17.6 | 2.7 | 5.3 | 143 | 150 |
| Yorkshire Water Services Ltd | 25.9 | 2.9 | 5.5 | 119 | 125 |
| Industry average | 25 | 2.9 | 5.5 | 125 | 132 |
|
| 1 Percentage increases exclude the effect of inflation. Inflation, as measured by the Retail Price Index, increased by 66.1% between November 1988 and November 2003 and 2.53% between November 2002 and November 2003. |
| 2 Percentage changes and level of bills for 2003-04 and 2004-05 are estimates based on provisional and forecast data provided by each company. |
| 3 Percentage changes between 2003-04 and 2004-05 are calculated from average bills expressed in pounds and pence. |
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