02/12/2004

Water bills increase by 18%

Industry regulator Ofwat has announced a hefty increase in water charges in England and Wales.

Customer bills are set to rise by an average of 18% over the next five years. From April 2005 customer bills will climb by £46 from £246 to £295. Those hardest hit by the increases will be Southern Water, South West Water and Wessex Water users who can expect to pay up to an extra 25% on their current bill over five years.

WaterVoice Chairman, Maurice Terry, said: "This is bad news for the millions of water customers who will find these increases neither affordable nor acceptable. The Government must act immediately to ensure that customers on low and fixed incomes receive effective help to pay their water bills, through the mainstream tax credits and benefits system."

He added that latest figures on debt show £893 million of outstanding revenue from household bills across England and Wales at the end of 2003-04, and further charges could push thousands of people into debt for the first time.

Dr John Ford of WaterVoice Wales criticised the charges and pointed out that the 2005 increase is more than six times the rate of inflation.

Ofwat has said that the increase is needed for essential maintenance of pipes, sewers and treatment works.

The body also said that additional funding is needed for 3,000 schemes to improve rivers and coastal waters and 500 investigations to inform decisions on future and environmental protection.

(mmcg/sp)

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