31% rises in water bills may be underestimate: WaterVoice

The huge rises in water bills predicted last year by the industry may have been seriously underestimated, according to the water utility watchdog WaterVoice.

The agency said that 2004 was already set to be a difficult year for water customers, but average proposed water bill increases of £72 (31%), plus inflation, "may even underestimate the real cost to customers" of water companies' activities for 2005 to 2010.

In a briefing note published today, summarising WaterVoice's final responses to water companies' draft business plans, WaterVoice said that the true costs of proposed environmental improvements may be higher than those proposed last autumn. Implementing EU directives, alongside new taxation and accounting methods, could force prices up even further, it claimed.

Maurice Terry, WaterVoice Chairman, said: "There might be a sting in the tail of the 2004 Price Review, if companies are required by government to aim for more ambitious environmental standards. Such demands could also distract water companies from work which has more direct impact on and urgency for customers, such as measures to tackle sewer flooding.

"Rather than rush to implement the provisions of various EU Directives, where the benefits of doing so are not clear-cut, several companies have suggested that they carry out studies to determine the best way forward. We support this approach."

Companies' preferred strategies detail capital expenditure on environmental improvements at £4.7 billion. Yet the environmental schemes proposed by companies do not, for the most part, include: new designations under the Freshwater Fish Directive; extensions to the Shellfish Directive; and designation of the North Sea, North East Irish Sea and the Solent, among others, as 'sensitive waters'.

(gmcg)