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Household customers in England and Wales will see an average increase of 5.5% (including inflation) in their water and sewerage bills from April 2006, Ofwat announced today. Customers' bills will rise by an average of £15, from £279 to £294. The above inflation price increases are necessary for water companies to meet the rising costs of delivering safe, clean drinking water to homes, taking away waste water and making improvements to the environment and customer service. The increases are in line with the price limits that Ofwat set in December 2004. Changes to individual customers' household bills will vary according to which company supplies them. For example:
Some unmetered customers, especially those with low water use living in homes with a high rateable value, would pay less if they had a water meter. Companies will be able to provide further information on the effect that switching to a meter will have on bills. Director General of Water Services Philip Fletcher said: "I realise that these bill increases will not be welcome, but I want to reassure customers that bills are going up by no more than is necessary. Price rises are unavoidable because of rising costs and the new challenges facing water companies. "The price increases should also secure the progress customers have already seen and enable companies to make further improvements to water quality and the environment and significantly reduce flooding from sewers in the future." Ofwat will publish its annual 'Water and sewerage bills 2006-07' leaflet shortly which will explain how the bills are calculated. The price limit for the following year, 2007-08, indicates a £7 increase on average for England and Wales, plus inflation. Table 1: Average household bills for water and sewerage 2006-07
Note: Bills for 2005-06 and 2006-07 are estimates based on provisional forecast data provided by each company, for the years ending 31 March. To calculate the total average bill, you must add the average water bill to the average sewerage bill. Your water and sewerage services may be provided by different companies. Changes may not equal the sum of their component parts due to rounding. The average bills for Dwr Cymru reflect the rebate given to customers in both 2005-06 and 2006-07 (£18 and £19 respectively for a customer taking both water and sewerage services from Dwr Cymru). ¹The above table does not take into account a one-off payment of £20 which South West Water is making to its customers in 2006-07. Unlike Dŵr Cymru's customer dividend, this payment is not directly linked to water and sewerage charges. Notes to Editors: 1. The Director General of Water Services is the current economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them. His duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. He will be succeeded by the Water Services Regulation Authority on 1 April 2006. 2. The actual increase in bills includes inflation of 2.4% (November 2005 RPI). 3. The leaflet 'Water and Sewerage Bills 2006-07' is expected to be available on the Ofwat website at www.ofwat.gov.uk on 1 March and from the Ofwat library 0121 625 1373 from 8 March 2006. 4. To help customers understand why bills have gone up, we have produced individual company briefing sheets, which are now available on our website. 5. Attached table - Average household bills for 2006-07 - shows the average across all customers for each company, including both metered and unmetered customers MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442 Out of hours enquiries to: 07884 117760 or 07778 160806. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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