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Future Water & Sewerage Charges
24/08/2010
Overview
The price review sets out the decisions of Ofwat (the Water Services Regulation Authority) on price limits for the regulated water companies in England and Wales for 2010 to 2015.
This is the fourth determination of price limits for the regulated water companies since privatisation 20 years ago. By reviewing prices Ofwat are able to make improvements to the service you receive from your water company. You should expect to see improvements such as the maintaining of assets, sewer flooding prevention, free water meter installation, increased renewable energy, improved drinking water and reduced leakage.
These improvements are the result of a substantial investment programme. By 2010, the companies will have invested about £85 billion (in today's prices) to maintain and improve assets and services. The price limits allow for another £22 billion of capital expenditure in the next five years. At 94p a day on average, water bills for most customers represent good value for money.
How will the review affect your bill?
The price limits set increase by an average of 0.5% a year before inflation. They will lead to average bills falling just below today's levels - by £3 in real terms over the period to 2015. This compares with an increase of £31 that the companies proposed in their business plans - an increase of 9%.
How have these decisions been made?
Ofwat have taken into account the strategic policy statements on water for both England and Wales and made decisions that are consistent with social and environmental guidance issued by the Secretary of State for the Environment, Food and Rural Affairs and the Welsh Assembly Government. The price limits take account of the formal guidance issued by Secretary of State for the Environment, Food and Rural Affairs and the Welsh Assembly Government. Ofwat have also taken advice from the quality regulators - the Drinking Water Inspectorate (DWI) and the Environment Agency, working where appropriate with Natural England and the Countryside Council for Wales.