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| Small cut in cost of water bills | Small cut in cost of water bills |
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| Average water bills in England and Wales will be reduced slightly over the next five years, regulator Ofwat has announced. | Average water bills in England and Wales will be reduced slightly over the next five years, regulator Ofwat has announced. |
| It has ruled that typical bills will fall by £3 to £340 by 2015, before the impact of inflation is considered. | It has ruled that typical bills will fall by £3 to £340 by 2015, before the impact of inflation is considered. |
| Publishing its final decisions on what firms can charge from 2010 to 2015, Ofwat said bills would be 10% lower than the level companies had asked for. | Publishing its final decisions on what firms can charge from 2010 to 2015, Ofwat said bills would be 10% lower than the level companies had asked for. |
| However, Ofwat had initially wanted to cut bills by a larger margin of £14. | |
| It had suggested cutting the average bill to about £330 in its draft proposals, released in July. | |
| People can shop around for the best deal on many things, but not water Regina Finn, Ofwat chief executive | |
| Ofwat chief executive Regina Finn said the regulator had listened to its stakeholders and to customers since its draft was published. | |
| "[Customers] have told us that certainly what they want is a safe, secure water supply, but they wanted some more things. [For instance] they wanted more money spent on protecting homes from sewer flooding," she said. | |
| "So we've put those things in, but make no mistake - we have challenged hard to make sure they get the best value for money and we've managed to keep their bills flat at the same time." | |
| Protecting customers | |
| Ofwat added that the firms must invest more than £22bn during the five years. | |
| This figure - which is for the total amount across the industry - accounts to an investment of more than £935 per household in England and Wales. | This figure - which is for the total amount across the industry - accounts to an investment of more than £935 per household in England and Wales. |
| "People can shop around for the best deal on many things, but not water. Our job is to do this for them," said Ms Finn. | |
| "We will now make sure the companies deliver on their promises. If they don't, we'll take action to protect customers." | "We will now make sure the companies deliver on their promises. If they don't, we'll take action to protect customers." |
| The £22bn of earmarked investment includes £12.9bn to maintain and improve infrastructure, such as pipes and treatment works, and £4.6bn on improving drinking water and the environment. | The £22bn of earmarked investment includes £12.9bn to maintain and improve infrastructure, such as pipes and treatment works, and £4.6bn on improving drinking water and the environment. |
| Scottish water companies have been told they cannot raise their bills for a year from April 2010. | |
| The regulator - the Water Industry Commission for Scotland - said it was likely to extend the price freeze for another year. | |
| Prices cannot rise higher than 5% below inflation over the next five years. Scottish Water has also been told to reduce leaks by a third. |