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Ofwat today published draft price limits for Wessex Water, Bristol 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 Wessex Water their bills would increase by an average of £55 to £332, before inflation, over the period. This compares with the company's proposal for an increase of £87 over the period. However, £21 of the average increase would be required in the first year, April 2005, to reflect the impact of costs on the company. The two companies which provide water services only would also be allowed increases. 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. They would enable Wessex Water to invest more than £700 million to carry out, for example:
Philip Fletcher, Director General of Water Services, said: "I believe that these proposals are fair to customers, and to the companies. Although the average rise in bills for Wessex Water customers is more than the average for England and Wales as a whole, I am convinced after reviewing the company's business plan carefully that it is necessary. Customers have told us how important it is to maintain a water service in which customers can have confidence. "Much of this increase is needed to safeguard essential water and sewerage services and to make the further improvements to drinking water quality and to the environment that the Government wants to see delivered. The increase will also help to enable the company to maintain secure supplies for customers now and in the future. "I am very conscious that these proposals may present problems for customers on low incomes. We have worked hard to ensure that the price limits are no higher than they need to be. The longer term picture is that customers of Wessex Water would by 2009 be paying 9% more on average, before inflation, than in 1999. "The Government is currently looking into the issue of affordability of water charges for customers on low incomes. Ofwat is playing its full part in that review. "Although in Ofwat we have thought hard about these proposals, 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 6. 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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