This site uses the UK Government AccessKeys system
|
|
What's new | Publications | Media centre | Price review | FAQs Update alerts | Consumer issues | Site map | Competition | Contact us |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Media centre
Ofwat today published final price limits for the water and sewerage companies in England and Wales for the five years from 1 April 2005. Effect on customers' bills
Benefits
Effect on companies
Philip Fletcher, Director General of Water Services, said: "These decisions strike the right balance. They will enable water companies to meet the needs of customers and the environment whilst continuing to deliver a safe and reliable service. The price limits are as high as they need to be but no higher. "We have considered carefully the comments made by customers, the companies, environmental groups and the City on our draft decisions published in August. And we have taken into account Ministers' final guidance. "To protect the progress that companies have already made to customer services and the environment, and to deliver further improvements, bills will need to increase by an average £46 over the next five years. But the increase will still be one-third lower than the companies sought. "We know these increases will be unwelcome, especially to customers on low incomes. We have challenged the companies' costs to ensure customers continue to receive value for money from their water and sewerage services. This means that by 2009 customers will be paying on average only around 7% more, before inflation, than they were in 1999. "We have responded to the wishes of customers, WaterVoice and the sewerage companies who wanted to see further investment to deal with the scourge of sewer flooding. The new price limits will now enable companies to resolve or alleviate, by 2010, all the known high-risk problems identified in their business plans where overloaded sewers cause flooding inside properties. They will also be able to make further progress in dealing with external sewer flooding problems. "We have confirmed a significant increase in work on maintaining pipes, sewers and treatment works. This will safeguard water companies' assets and ensure secure supplies in the future. "We have worked closely with the environmental regulators to ensure the water companies will be able to continue to play their part in protecting the environment on a long-term sustainable basis. "We have included almost all of the water quality and environmental schemes, and investigations, sought by Ministers. But in the small number of cases where the company proposals appear poor value for money we have asked for these to be reappraised. Our price setting regime can deal with the costs of any extra work confirmed during the 2005-10 period." Notes to Editors: 1. The Director General of Water Services is the economic regulator of 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. 2. The final determination document, 'Final Determination – Future water and sewerage charges 2005-10', will be available from the Ofwat library on 0121 625 1373 and on Ofwat's website www.ofwat.gov.uk. 3. The figures quoted in all the attached tables are before inflation. Tables 1 and 2 are presented in 2004-05 prices. 4. Ofwat has published ten regionalised press notices to provide more information on our final decisions for Wales, and for the other nine regions in England: Anglian, Northumbrian, Severn Trent, South West, Southern, Thames, United Utilities, Wessex and Yorkshire. 5. Although this marks the end of the periodic review, companies will have until 1 February 2005 to ask the Director General to refer the price limits he has set to the Competition Commission for redetermination. 6. Ofwat published its draft price limits in August 2004. These are available on the Ofwat website www.ofwat.gov.uk. 7. Media enquiries to Ofwat Press Office on 0121 625 1416/1496/1442. Out of hours enquiries to pager: 08700 555 500 water 503/509.  | ||||||
© Crown copyright |
Disclaimer & Privacy Statement |