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Ofwat today published final price limits for Northumbrian Water for the five years from 1 April 2005. Effect on customers' bills
Benefits The price increases will enable Northumbrian Water to invest nearly £840 million to:
Philip Fletcher, Director General of Water Services, said: "These price limits are as much as the companies need to continue to provide high quality services, but no more than is necessary. This is to protect the interests of customers. "We have considered carefully the representations made by customers, the companies, environmental groups and others and we have taken into account guidance from Ministers following the announcement of our draft decisions in August. "To protect the progress that the companies have already made on customers' services and the environment, and to deliver further improvements, bills will need to rise. "Although the increases are higher than our draft decisions, they are still lower than the companies asked for. We have challenged the companies costs to ensure customers continue to receive value for money from their water and sewerage services. This means that by 2009 customers of Northumbrian Water will be paying on average 4% less, before inflation, than they were in 1999. "The increases will enable Northumbrian Water to make significant investment into pipes, sewers and treatment works in order to safeguard supplies for the future. The company will also be able to continue to play its part in protecting the environment on a long-term sustainable basis. The benefits it will be able to deliver include the water quality and environmental improvements that Ministers wanted. "Both WaterVoice and the company told us they wanted extra funding for cleaning water mains to improve drinking water and we have revised our draft decisions to include this. "We have listened to customers, WaterVoice and Northumbrian Water who also wanted to see more investment to deal with the scourge of sewer flooding. These increases mean the company will be able to resolve or alleviate, by 2010, all known high risk problems identified in its plan where overloaded sewers cause flooding inside properties. It will also be able to make further progress in dealing with external sewer flooding." 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 final determinations document, 'Future water and sewerage charges 2005-10' - Final 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. Northumbrian was allowed an increase in its price limit to 10% from zero in 2004-05 following an interim review. This has reduced the price limit that the company would otherwise have been allowed in 2005-06. 5. Although this marks the end of the periodic review, companies will have until 1 February 2005 to ask the Director General to refer the price limits he has set to the Competition Commission for redetermination. 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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