Ofwat holds back from deeper cuts
Updated on 26 November 2009
Water watchdog Ofwat has pulled back from deep cuts in household bills in its final decision on prices for the next five years.
The regulator is now calling for a much smaller £3 cut in average bills to £340 before inflation for the 2010-15 period - compared with the £14 reduction put forward in July.
Ofwat said its decision to leave prices broadly flat still meant bills would be £34 or 10% lower on average than under plans submitted by water companies.
But whether bills rise or fall will depend on where customers live.
Customers of Essex and Southern Water will face the biggest jump in prices - 13% over the period - with Bristol Water's bills up 7%.
The UK's biggest water company, Thames Water, will be allowed to raise prices by 3% compared with Ofwat's initial call for flat prices from the firm.
But in other areas, customers of Anglian Water and Welsh Water will see price cuts of 7% over the five-year period.
The Consumer Council for Water gave Ofwat's final decision "seven out of 10" and said the regulator's original price cutting plans were "arguably unrealistic".
Chairwoman Dame Yve Buckland said: "Even though prices are generally flat, there is still an issue of affordability for many water customers.
"When we ask them 'are your water bills affordable?' one in five customers tells us no. We are concerned that this reduction in prices still isn't sufficient to solve the problem, so we will continue to press Government to provide better support for such households."
These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.
