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| Small cut in cost of water bills | Small cut in cost of water bills |
| (39 minutes later) | |
| 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. |
| The water companies said funding greater investment would be difficult. | The water companies said funding greater investment would be difficult. |
| "It is quite possible that companies will have to adjust or stop their leakage programmes," said Pamela Taylor, the chief executive of the industry body Water UK. | "It is quite possible that companies will have to adjust or stop their leakage programmes," said Pamela Taylor, the chief executive of the industry body Water UK. |
| "They will need to make sure they can fulfil their legal obligations. They've got challenges ahead such as climate change, with increased drought and flooding, [and] a growing population with more homes." | "They will need to make sure they can fulfil their legal obligations. They've got challenges ahead such as climate change, with increased drought and flooding, [and] a growing population with more homes." |
| See the expected changes for your local water company | See the expected changes for your local water company |
| Protecting consumers | Protecting consumers |
| Ofwat had initially wanted to cut bills by a larger margin of £14. | 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. | It had suggested cutting the average bill to about £330 in its draft proposals, released in July. |
| Ofwat chief executive Regina Finn said the regulator had listened to its stakeholders and to customers since its draft was published. | Ofwat chief executive Regina Finn said the regulator had listened to its stakeholders and to customers since its draft was published. |
| "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. | "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. |
| "[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. | "[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. |
| Wide variation | Wide variation |
| The official watchdog, the Consumer Council for Water, broadly supported Ofwat's decision. | The official watchdog, the Consumer Council for Water, broadly supported Ofwat's decision. |
| But it pointed out that bills would vary a lot between individual suppliers. | But it pointed out that bills would vary a lot between individual suppliers. |
| "The prices announced vary from company to company, so depending on where they live, customers will face a range of price changes from a reduction in average annual bills by as much as 7%, to an increase in bills of 13% before inflation," it said. | "The prices announced vary from company to company, so depending on where they live, customers will face a range of price changes from a reduction in average annual bills by as much as 7%, to an increase in bills of 13% before inflation," it said. |
| "Customers of companies such as Essex and Suffolk Water (13%), Bristol Water (7%), Southern Water (5%) and Thames Water (3%) will all see rises in average bills. | "Customers of companies such as Essex and Suffolk Water (13%), Bristol Water (7%), Southern Water (5%) and Thames Water (3%) will all see rises in average bills. |
| "South West Water customers without a meter could see a 29% rise in bills," the Consumer Council warned. | "South West Water customers without a meter could see a 29% rise in bills," the Consumer Council warned. |
| More investment | More investment |
| Ofwat said one part of its price deal with the water firms was they must invest more than £22bn during the five years. | Ofwat said one part of its price deal with the water firms was they must invest more than £22bn during the five years. |
| This figure - which is for the total amount across the industry - amounts to an investment of more than £935 per household in England and Wales. | This figure - which is for the total amount across the industry - amounts to an investment of more than £935 per household in England and Wales. |
| 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. | 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. | 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. | 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. |
| Prices limits for Northern Ireland Water, the government owned water and sewerage monopoly will be published in December. | Prices limits for Northern Ireland Water, the government owned water and sewerage monopoly will be published in December. |
| The Northern Ireland Utility Regulator proposed in September that household bills should come down by £22 over the three years between April 2010 and April 2013. | The Northern Ireland Utility Regulator proposed in September that household bills should come down by £22 over the three years between April 2010 and April 2013. |
EXPECTED WATER BILL CHANGES | EXPECTED WATER BILL CHANGES |
Water and sewerage companies | Water and sewerage companies |
| Company Avge bill 2009-10 Avge bill 2014-15 % change excluding inflation Anglian Water £389 £361 -7% Dwr Cymru/ Welsh Water £404 £374 -7% Northumbrian £314 £331 6% Severn Trent £305 £292 -4% South West £489 £483 -1% Southern £373 £393 5% Thames £303 £313 3% United Utilities £374 £364 -3% Wessex £412 £424 3% Yorkshire £331 £332 0% |
Water-only companies | |
| Company Avge bill 2009-10 Avge bill 2014-15 % change excluding inflation Bournemouth & W Hants £133 £134 1% Bristol £157 £168 7% Cambridge £114 £116 1% Cholderton £188 £188 0% Dee Valley £128 £130 2% Veolia South East £185 £181 -2% Portsmouth £93 £87 -7% South East £169 £174 3% South Staffs £124 £126 2% Sutton & E Surrey £166 £167 1% Veolia East £169 £160 -6% Veolia Central £156 £146 -6% Source: Ofwat | |
| Weighted average of water and sewerage billsAll figures exclude inflation | Weighted average of water and sewerage billsAll figures exclude inflation |
| Return to top | Return to top |