PN 15/07: Ofwat continues to protect water and sewerage consumers

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PN 15/07	16 May 2007
Ofwat continues to protect water and sewerage consumers

Ofwat is continuing to protect consumers by ensuring they get value for money for the high quality sustainable water services they receive.

Speaking at the Water for Living Conference today Ofwat Chief Executive, Regina Finn said:

" Without Ofwat the average customer bill, set out in today's report, would be £90 higher. Many households could reduce their bills even more by switching to a water meter and by using water more efficiently. "

The 'Water and Sewerage charges 2007-08 report' out today, explains how Ofwat reviews charges' schemes for each company to ensure that charges are fair, non-discriminatory and cost-reflective. The report highlights that:

As a result of Ofwat's ongoing investigations into customer service failures Thames Water has returned £2.7 million, and Southern Water has returned around £3.4 million to customers;
A challenge from Ofwat led Tendring Hundred Water to discover an accounting error which had led to customers being overcharged. The company has returned £1 million to customers in 2007-08;
Ofwat has approved a new tariff introduced by Wessex Water which is aimed at customers in financial difficulty who are struggling to pay their bills. The regulator also backed South West Water's scheme which aims to help 7,500 customers to pay their bills over the next three years;
Ofwat has also blocked changes to companies' tariff proposals that were not in the interests of water customers. Thames Water's proposed increases in large user tariffs were rejected because of possible undue discrimination against commercial customers.

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 report, 'Water and sewerage charges 2007-08' is available from the Ofwat library tel: 0121 625 1373 and on Ofwat's website,
www.ofwat.gov.uk
3. Ofwat cannot say what future regulatory action will be required, including the scale of the penalties, until it has completed its investigations into Thames Water, Southern Water, and Severn Trent Water.
4. Regina Finn is speaking at the Water for living – how much is enough?' conference aimed at sustainable water resource management in Westminster on Wednesday 16 May.
5. Media enquiries to Ofwat Press Office on 0121-625 1442/1496/1416. Out of hours enquiries to 0121 625 1300.

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