Bristol Water 'must cut bills' says regulator

http://www.bbc.co.uk/news/uk-england-bristol-33475652

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A water company serving 1.2 million customers has been told it must cut household prices after it rejected an earlier ruling by the regulator.

Ofwat had told Bristol Water to cut bills by 19%, before inflation, over 2015-2020.

The firm challenged the order and was referred to the Competition and Markets Authority (CMA) which "in provisional findings" said the cut should be 17%.

A final price determination must be issued by 3 September.

'Substantial reductions'

Bristol Water had rejected the initial price determination, arguing this would not leave it with sufficient funds to run the business and invest.

Anne Lambert, from the CMA, said: "Our provisional findings would result in substantial reductions in bills, as compared with Bristol Water's plans, although they involve a small rise above the price limits set by Ofwat.

"We provisionally rejected several projects proposed by Bristol Water which would have increased its expenditure - and ultimately bills - because we did not consider they were fully justified and in the interests of customers."

Bristol Water chief executive Luis Garcia said: "The provisional findings are positive in some areas. We will continue until the conclusion of the process on September 3 to ensure we can deliver what our customers want - a reliable and quality water supply - at an appropriate bill level."