Average water bills to rise 0.5% above inflation

Average water and sewerage bills will rise by 5.7% from April, the water regulator Ofwat has announced.

The above inflation increase will bring the typical water bill to £376 per household, up by an average of £20. The 0.5% above inflation increase was considerably below the 10% rise in prices the water companies were pushing for, according to the regulator. The hike is part of a five-year program of annual prise rises to help fund £22 billion worth of investment in the country’s water and sewerage infrastructure.

Ofwat said the price was made up of November’s Retail Prices Index (RPI) measure of inflation of 5.2% plus 0.5%.

Stark variations were notable in different regions around the country, with homeowners in the Southern district seeing their water and sewerage costs rising by 8%, while those served by Dwr Cymru will have an extra 3.8% added to their bill. The increases will take the annual cost of water and sewerage in the South West area to £543 a year – the highest in the country. Households in the Severn Trent region will only have to pay £325 on an annual basis when the price rises take effect, while London residents served by Thames Water will pay £339.

Regina Finn, Ofwat Chief Executive Officer said: “When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. We challenged companies hard to deliver this. Our decision meant that, before inflation, average bills would remain broadly stable between 2010 -15.”

“We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills, and this is driving these rises.”

“We will make sure customers get value for money. Companies are investing £22 billion by 2015 – more than £935 for every property in England and Wales. This will deliver benefits to us all – from continuing to improve reliability of supplies to cleaner rivers and beaches.”

“If companies don’t deliver on their investment promises, we will take action.”

Dame Yve Buckland, Chair of the Consumer Council for Water, said the price rises could push more households into water debt: “Companies need to tell their customers very clearly what they are getting for their money and to help customers who are having difficulty paying their bill.”

“We will be working with companies and the regulator throughout the next price review to ensure that future water prices are acceptable and affordable. We will also applaud those companies who are currently exploring different ways of mitigating the impact of inflation on their customers.”

“Anyone struggling to pay their water bill should contact their company immediately. They can usually offer more flexible payment options, such as weekly or monthly payment plans. In some cases they may also be able to help through special assistance funds, or schemes to help eligible customers reduce their water bills.”