PN 19/04: Ofwat's new moves to ensure fair charging

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PN 19/04	18 May 2004
Ofwat's new moves to ensure fair charging

A new report from Ofwat shows that the combined water and sewerage bills in 2004-05 for most customers in England and Wales will continue to be lower in real terms than they were at the last price review in 1999-2000, before the Regulator made an average 12% cut in bills.

The report also reveals that Ofwat has taken action several times during the last year to block changes to companies' tariff proposals that it found unacceptable and not in the interests of water customers.

The action led to:

Cambridge Water dropping plans to impose higher standing charges on customers who paid their bills at post offices.
Dwr Cymru revising its proposal to charge customers £30 for dishonoured cheques. Ofwat, while agreeing in principle, thought the amount was too high and the company reduced it to £20.
South East Water withdrawing plans to charge a £10 fee to customers who move house and still have money left on their account. The charge was intended to cover the cost of issuing a refund.
Sutton and East Surrey Water dropping a proposal to introduce an £18 administration fee for customers who missed one payment within each instalment cycle.

The report summarises the water companies' regulated charges for the coming year. It sets out Ofwat's policy on tariff issues and its approach to approving the companies' charging schemes.

Note 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. Customers' interests are represented by WaterVoice.
2. The Ofwat report, 'Tariff Structure and Charges 2004-05' is available from the Ofwat library on 0121 625 1373 and on Ofwat's website www.ofwat.gov.uk.
3. Further details of the new differentials in charging are contained in RD02/04 – Measured/Unmeasured Tariff Differential: Conclusions on the Ofwat website www.ofwat.gov.uk

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