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| Version 12 | Version 13 |
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| Water companies plan price rises | Water companies plan price rises |
| (about 2 hours later) | |
| Water companies in England and Wales have been telling the regulator Ofwat how much they want to increase bills for the five years from 2010. | Water companies in England and Wales have been telling the regulator Ofwat how much they want to increase bills for the five years from 2010. |
| Thames Water is expecting the highest rise of about 3% a year above inflation and United Utilities plans to raise prices by 2.7% above inflation. | Thames Water is expecting the highest rise of about 3% a year above inflation and United Utilities plans to raise prices by 2.7% above inflation. |
| Northumbrian's figure will be 1.3% and Anglian Water's sees a 0.7% rise. | Northumbrian's figure will be 1.3% and Anglian Water's sees a 0.7% rise. |
| Severn Trent asked for rises "only slightly above inflation" while Welsh Water's will not rise above inflation. | Severn Trent asked for rises "only slightly above inflation" while Welsh Water's will not rise above inflation. |
| See how much water firms will raise prices by over five years | |
| Overall the firms aim to invest £27bn during the period to ensure the "right balance between supply and demand", said Water UK, which represents UK water and wastewater service providers. | Overall the firms aim to invest £27bn during the period to ensure the "right balance between supply and demand", said Water UK, which represents UK water and wastewater service providers. |
| The average bill in 2015 is expected to be £350, with bills increasing £30 over the five-year period, it said. | The average bill in 2015 is expected to be £350, with bills increasing £30 over the five-year period, it said. |
| We have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with [an] influx of people Peter AntolikThames Water director of regulation class="" href="/1/hi/uk/7554015.stm">Water firm plans £6.5bn overhaul | |
| "The combined industry programme is a major and timely investment in national infrastructure that everyone depends on and we know will be severely challenged by climate change," said Pamela Taylor, Water UK's chief executive. | "The combined industry programme is a major and timely investment in national infrastructure that everyone depends on and we know will be severely challenged by climate change," said Pamela Taylor, Water UK's chief executive. |
| Major investments | Major investments |
| Thames Water, the UK's biggest water company, said its £6.5bn investment plan would be the largest spending programme carried out by a UK water company. | Thames Water, the UK's biggest water company, said its £6.5bn investment plan would be the largest spending programme carried out by a UK water company. |
| The firm said its customers had "enjoyed the lowest bills in the industry for many years", and while there would be "an inevitable impact on bills", it would try to keep charges below the industry average. | The firm said its customers had "enjoyed the lowest bills in the industry for many years", and while there would be "an inevitable impact on bills", it would try to keep charges below the industry average. |
| Peter Antolik, Thames Water's director of regulation, told BBC Radio 4's Today programme that the money was vital to improve London's ageing water system. | Peter Antolik, Thames Water's director of regulation, told BBC Radio 4's Today programme that the money was vital to improve London's ageing water system. |
| All water firms are submitting draft plans to Ofwat | All water firms are submitting draft plans to Ofwat |
| "We also have, it should be remembered, a growing population in London and the south east," he said. | "We also have, it should be remembered, a growing population in London and the south east," he said. |
| "We have, we estimate, about 380,000 more people coming in to the region and we have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with that influx of people." | "We have, we estimate, about 380,000 more people coming in to the region and we have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with that influx of people." |
| Tackling floods | Tackling floods |
| Welsh Water announced plans to invest £1.5bn, or £1,000 per household, on average during the period. | Welsh Water announced plans to invest £1.5bn, or £1,000 per household, on average during the period. |
| The money will be used to protect the quality of the water, support new infrastructure, improve water treatments and reduce the risk of repeat sewer flooding to properties. | The money will be used to protect the quality of the water, support new infrastructure, improve water treatments and reduce the risk of repeat sewer flooding to properties. |
| The firm's average household bill will be £390 before inflation. | The firm's average household bill will be £390 before inflation. |
| United Utilities said its capital investment for the period would be £4bn, of which £1.6bn would be for water services and £2.4bn would be for water waste services. | United Utilities said its capital investment for the period would be £4bn, of which £1.6bn would be for water services and £2.4bn would be for water waste services. |
| While the firm said it would increase prices by 2.7%, bills were tipped to rise by 2.1% on average thanks to greater use of water meters. | While the firm said it would increase prices by 2.7%, bills were tipped to rise by 2.1% on average thanks to greater use of water meters. |
| ANNUAL WATER PRICE RISES 2010-2015 Thames Water - 3% above inflationUnited Utilities - 2.7% above inflationNorthumbrian Water - 1.3% above inflationSevern Trent - "slightly above inflation"Anglian Water - 0.7% above inflationWelsh Water - at inflation only | |
| However it added that it would reassess its costs when it submits its final plan to Ofwat in 2009 "in light of financial market conditions at that time". | However it added that it would reassess its costs when it submits its final plan to Ofwat in 2009 "in light of financial market conditions at that time". |
| Severn Trent said it would invest £3.2bn to deliver improved services, reinforce the network following last summer's flooding and reduce sewer flooding. It also said the money would be used for environmental improvements. | Severn Trent said it would invest £3.2bn to deliver improved services, reinforce the network following last summer's flooding and reduce sewer flooding. It also said the money would be used for environmental improvements. |
| Tony Ballance, the firm's director of regulation and competition, said: "We believe our draft plan provides the best balance between improved services, the needs of the water environment and a cost that customers are willing to pay". | Tony Ballance, the firm's director of regulation and competition, said: "We believe our draft plan provides the best balance between improved services, the needs of the water environment and a cost that customers are willing to pay". |
| Anglian Water said it would increase the average household bill from £360 in 2010 to £373 in 2015, an annual rise of 0.7%. | Anglian Water said it would increase the average household bill from £360 in 2010 to £373 in 2015, an annual rise of 0.7%. |
| Customer concerns | Customer concerns |
| Tony Smith, chief executive of the Consumer Council for Water said the customers were giving the message that they want the service to be maintained. | Tony Smith, chief executive of the Consumer Council for Water said the customers were giving the message that they want the service to be maintained. |
| "They want a safe, reliable water supply, they want an effective sewerage system but above all, they want prices not to go above inflation." | "They want a safe, reliable water supply, they want an effective sewerage system but above all, they want prices not to go above inflation." |
| The watchdog will decide whether to allow above-inflation price rises at a time when customers are being hit by other rising bills. | The watchdog will decide whether to allow above-inflation price rises at a time when customers are being hit by other rising bills. |
| "This is the start of the process of making decisions on how each company proposes to provide value-for-money, long-term, high-quality water services to its customers," said Ofwat chief executive Regina Finn. | "This is the start of the process of making decisions on how each company proposes to provide value-for-money, long-term, high-quality water services to its customers," said Ofwat chief executive Regina Finn. |
| "We will now examine draft business plans in detail, checking the proposed level of service and investment. | "We will now examine draft business plans in detail, checking the proposed level of service and investment. |
| "We will make sure each plan includes everything we expect, takes account of concerns expressed by customers, and does so as efficiently as possible." | "We will make sure each plan includes everything we expect, takes account of concerns expressed by customers, and does so as efficiently as possible." |
| Ofwat is due to make its final decision by November 2009. | Ofwat is due to make its final decision by November 2009. |
| Ofwat said in February that average bills across England and Wales would rise by 5.8% this year, with increases of 8% in some areas. | Ofwat said in February that average bills across England and Wales would rise by 5.8% this year, with increases of 8% in some areas. |
| The regulator has said increases in bills are projected to be 42% in real terms by 2010 since the privatisation of the water industry in England and Wales in 1989. | The regulator has said increases in bills are projected to be 42% in real terms by 2010 since the privatisation of the water industry in England and Wales in 1989. |
| name="table"> | |
class="data466">PROPOSED WATER BILL INCREASES | |
class="data466">Total rise over period 2010-15 | |
| Water company Region Increase above inflation Anglian Central/Eastern 3.5% Bristol Western 26.0% Cambridge Eastern 20.0% Dwr Cymru/Welsh Water Wales 0.0% Essex & Suffolk Central/Eastern 2.8% Portsmouth London & SE 7.0% Severn Trent Central/Eastern 1.0% South Staffs Central/Eastern 11.0% South West Western 12.5% (metered) / 40% (unmetered) Tendring Hundred Central/Eastern 13.0% Thames Southern 16.0% United Utilities Northern 11.0% Wessex Western 16.0% Yorkshire Northern 0.6% Source: Consumer Council for Water | |
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