PN 21/03: Balance of water companies' tariffs is fair

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PN 21/03	20 May 2003
BALANCE OF WATER COMPANIES' TARIFFS IS FAIR

Ofwat today published its 'Tariff structure and charges 2003-04 report' which shows that water companies are keeping a fair balance of charges between measured, unmeasured, trade and household customers.

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.

The report also shows that:

for most customers their combined water and sewerage bills in 2003-04 will continue to be lower in real terms than they were at the last price review in 1999-2000, before Ofwat made an average 12% cut in bills;
all companies have kept the tariff differential between measured and unmeasured household charges within Ofwat's limit of £34 for the combined water and sewerage bill;
all ten sewerage companies have a fair balance between charges for trade effluent customers and household sewerage charges, which is what Ofwat expects; and
three companies have reduced the threshold at which their customers become eligible for intermediate user tariffs for commercial users. These tariffs offer a slight reduction to reflect the lower costs of supplying intermediate users.

Note to Editors:
1. The Director General of Water Services is the economic regulator of the water and sewerage industries 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. Ofwat's measured/unmeasured tariff differential ensures that a fair balance between charges for both sets of customers is maintained, thus avoiding undue preference or discrimination between customer groups. Any difference between measured and unmeasured household bills should, on average, be no greater than the cost of providing a metered service.
3. The companies who have introduced new intermediate user thresholds are Northumbrian Water (20 Ml/year for Northumbrian and Essex and Suffolk regions), Severn Trent Water (10 Ml/year) and Thames Water (20 Ml/year).
4. Copies of 'Tariff structure and charges 2003-04 report' published on 20 May 2003 will be available from the Ofwat website on www.ofwat.gov.uk or from the Ofwat library on 0121 625 1373.

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

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