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Ofwat today published draft price limits for Southern Water, Folkestone and Dover Water, Mid Kent Water, Portsmouth Water, South East Water and Bournemouth & West Hampshire Water for the five years from 1 April 2005. The picture varies from company to company, but for those customers who receive both water and sewerage services from Southern Water their bills would increase by an average of £44 to £303, before inflation, over the period. This compares with the company's proposal in their business plan for an increase of £100 over the period. However, £20 of the average increase would be required next year, April 2005, to reflect the impact of costs on the company. The five companies which provide water services only would also be allowed increases, or in Portsmouth Water's case a small reduction. Ofwat has closely scrutinised the companies' plans. It believes that these proposals would strike a fair balance. Customers should pay no more than is necessary for the companies to continue to deliver safe, reliable and efficient services, and for further investment to improve the quality of drinking water, to clean up rivers and estuaries and to help deal with the problems of sewer flooding. The price limits would also enable companies in the south east to invest in the water and wastewater infrastructure required to serve major housing growth in the region. They would enable Southern Water to invest nearly £1.5 billion to carry out, for example:
Director General of Water Services, Philip Fletcher, said: "I believe that these proposals are fair to customers and to the company, and would benefit the environment. Although the average bill rise for Southern Water customers is slightly more than the £33 average for England and Wales as a whole, I am convinced after reviewing the company's business plan carefully that it is necessary. It is essential to maintain a water service in which customers can have confidence. "Much of the increase is needed to safeguard essential water and sewerage services and to make the further improvements to drinking water and to the environment that the Government wants to see delivered. The increase would also help to maintain secure supplies for customers now and in the future. "We have worked hard to protect customers from unnecessary bill increases and ensure that water companies continue to offer them value for money for the services they receive. The result over the longer term is that customers of Southern Water would by 2009 be paying broadly the same on average, before inflation, as they were in 1999. "We shall consider carefully all the comments which we receive before reaching conclusions on our final price limits in December." 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 draft determinations document, 'Future water and sewerage charges 2005-10 – Draft determinations', will be available from the Ofwat library on 0121 625 1373 and on the website at www.ofwat.gov.uk 3. The figures quoted in all the attached tables are before inflation. Average household bills in both tables are presented in 2004-05 prices. 4. Representations from water companies are due by 15 September 2004 and from others by 13 October 2004. 5. Ofwat also published today new research into the impact of internal and external sewer flooding on customers. The publication, 'Customer Research 2004: Survey of customers affected by sewer flooding', will be available from the Ofwat Library on 0121 625 1373 and on the Ofwat website, www.ofwat.gov.uk Media enquiries to Ofwat Press Office on : 0121 625 1416/1496/1442. Out of hours enquiries to pager: 08700 555 500 water 503/509.  | ||||||
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