PN 15/06: Water and sewerage charges report published

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PN 15/06	17 May 2006
Water and sewerage charges report published

Water customers are continuing to receive value for money, according to a new report published by Ofwat today.

The 'Water and Sewerage Charges 2006-07 report' shows how the price limits set by the regulator in 2004 translate into charges for customers. It explains how Ofwat reviewed charges schemes for each company to ensure that charges are fair, non-discriminatory and cost-reflective.

The average daily cost for households for the water and sewerage service in 2006-07 is 81 pence per day. This is an increase of 5.5%, including inflation, on the previous year. Increases in individual customers' charges will vary around this average depending on which company supplies them.

The report shows the tariffs set by each company. Highlights for individual companies include:

Severn Trent has reduced its bills following Ofwat's interim report into allegations of false reporting, to reflect the repayment of the first instalment towards £42 million due to customers.

South West Water is making a one-off payment of £20 per household this year to share the benefits of its recent financial restructuring programme with customers.

Dwr Cymru has again paid a customer dividend to each customer to reflect the structure of its owner as a company limited by guarantee and the progress it has made against its performance targets.

South West Water and Southern Water have introduced lower tariffs for their large trade effluent customers, reflecting the costs of serving those customers.

The drought in the south east of England and further increases in charges in the south west have raised the profile of water charging issues. Ofwat is continuing to work with the Department for Environment, Food and Rural Affairs on a study into affordability and charging. Meanwhile, Ofwat recognise that customers have a stronger incentive to use water wisely if they pay according to how much they actually use, and in the longer term metering seems to offer the fairest approach to charging.

Note to Editors:

The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. The Water Services Regulation Authority succeeded the Director General of Water Services on 1 April 2006.

The

'Water and Sewerage Charges 2006-07 report'

will be available on the Ofwat website,

www.ofwat.gov.uk

, and from the Ofwat Library on 0121 625 1373.

MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON:
0121 625 1416/1496/1442

Out of hours enquiries to: 08700 555 500 water 502/503. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk

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