Water bills to rise 13% by 2010

Water charges in England and Wales are set to rise by 13% over five years, half the companies' proposals for bill increases.

WaterVoice described as "better than expected" news that - if Ofwat's numbers are confirmed in December - water customers will see average bills rise by £33, from £249 now to £282 (not including inflation) over the five years from April 2005. This compares with the companies' proposals for an average increase of £70 (29%).

However, half of the rise for most customers in England and Wales will come in 2005-06. The biggest rise will see customers of Wessex Water paying an extra 20% (£55) over five years on their current average bill.

Publishing its consultation draft price limits today, Ofwat said that their proposals were "fair to customers and the companies, and will benefit the environment".

WaterVoice Council Chairman Maurice Terry welcomed the publication but added that there was still "unfinished business".

Mr Terry said that the government still had to finish the job of easing affordability problems for low and fixed income customers. It had promised the review in March, following a report by the Select Committee for Environment, Food and Rural Affairs on water pricing.

"As always, the devil is in the detail. We will examine Ofwat's decisions very closely to check the implications for customer service. In particular, we will examine the effects on customers' priorities: a secure water supply, maintaining drinking water quality and the collection and treatment of sewage, including the elimination of sewer flooding of homes," he said.

WaterVoice has recommended that the government introduce, at the earliest opportunity, more effective means of financial support in paying water bills, using the existing tax credits and benefits system.

(gmcg)