Water bills set to rise

Water bills in England and Wales are set to rise by almost 12% from April 1, the water regulator, Ofwat has said.

Ofwat said that the increases are necessary in order to reflect the higher costs of delivering water and sewage services, as well as the build-up of costs since the last review in 1999.

The revenue raised by the increases – estimated to be around £16.8 billion over the next five years – would be used in a capital investment programme, which would help maintain safe and reliable water supplies and sewage disposal, improve the quality of drinking water, and make further reductions in sewer flooding.

Commenting on the price increases, Philip Fletcher, Director General of Water Services, said: "I realise that all bill increases are unwelcome. But I can assure customers that bills are going up by no more than is necessary to enable water companies to continue to provide the high-quality water and sewerage services that customers require."

Despite the increases for 2005-2006, Ofwat said that many households' water and sewage bills would still be lower in real terms than they were in 1999, before the introduction of a 12% reduction in bills from April 2000.

(KmcA)