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Home size to decide water bills | Home size to decide water bills |
(about 3 hours later) | |
Water bills will be determined by the size of customers' homes under a new billing system from Thames Water. | Water bills will be determined by the size of customers' homes under a new billing system from Thames Water. |
Under the plan, 38,000 households without a water meter will be placed in one of three bands based on the number of bedrooms at the property. | Under the plan, 38,000 households without a water meter will be placed in one of three bands based on the number of bedrooms at the property. |
Thames said the system would better reflect the amount of water households use and result in lower bills. | Thames said the system would better reflect the amount of water households use and result in lower bills. |
It said 24,000 one or two bedroom homes would see their bills drop to £200 or £217 respectively from £245. | It said 24,000 one or two bedroom homes would see their bills drop to £200 or £217 respectively from £245. |
However, 11,500 homes with three or more bedrooms would see their bills increase to £266 from £245. | However, 11,500 homes with three or more bedrooms would see their bills increase to £266 from £245. |
See how the changes will affect your bill | See how the changes will affect your bill |
'Fairer charges' | 'Fairer charges' |
The new system only applies to households that had requested a meter, but lived in properties where it was not practical to fit one. | |
Thames Water said the changes will affect about 1% of its 3.2 million customers. | |
"We wanted to make our charges fairer for those customers who wanted to pay for what they used, but couldn't have a meter fitted," said Mike Tempest, customer services director for Thames Water. | "We wanted to make our charges fairer for those customers who wanted to pay for what they used, but couldn't have a meter fitted," said Mike Tempest, customer services director for Thames Water. |
If they can't have a meter fitted it's only right that set charges should reflect that Consumer Council for Water | If they can't have a meter fitted it's only right that set charges should reflect that Consumer Council for Water |
The Consumer Council for Water welcomed the change. | The Consumer Council for Water welcomed the change. |
"Clearly people living in smaller flats are likely to have comparatively small usage. | "Clearly people living in smaller flats are likely to have comparatively small usage. |
"If they can't have a meter fitted it's only right that set charges should reflect that," a spokesperson said. | "If they can't have a meter fitted it's only right that set charges should reflect that," a spokesperson said. |
Other water companies around the UK offer similar schemes for customers who can't have a meter installed. | Other water companies around the UK offer similar schemes for customers who can't have a meter installed. |
The next rise in water bills for householders in England and Wales will come into effect from April this year. | The next rise in water bills for householders in England and Wales will come into effect from April this year. |
Rising bills | Rising bills |
Regulator Ofwat is currently assessing water companies' proposed price increases, which are expected to be announced in the next couple of weeks. | Regulator Ofwat is currently assessing water companies' proposed price increases, which are expected to be announced in the next couple of weeks. |
Ofwat controls the prices charged by water companies in England and Wales. The average price rise must be no more than the limit set by Ofwat plus inflation. | Ofwat controls the prices charged by water companies in England and Wales. The average price rise must be no more than the limit set by Ofwat plus inflation. |
However there are no such regulatory limits on gas and electricity prices, which are linked to prices charged on the wholesale market. | However there are no such regulatory limits on gas and electricity prices, which are linked to prices charged on the wholesale market. |
In recent months, households have seen their bills rise in line with wholesale prices. | In recent months, households have seen their bills rise in line with wholesale prices. |
Regulator Ofgem says wholesale gas prices have increased by 66% in the last 12 months and wholesale electricity prices have risen 64%. | Regulator Ofgem says wholesale gas prices have increased by 66% in the last 12 months and wholesale electricity prices have risen 64%. |
Most recently, Scottish Power said gas bills for its customers would rise by 15% and electricity by 14% on average. British Gas - the UK's biggest power provider - increased gas and electricity prices by 15%. | Most recently, Scottish Power said gas bills for its customers would rise by 15% and electricity by 14% on average. British Gas - the UK's biggest power provider - increased gas and electricity prices by 15%. |
Npower raised its electricity prices by 12.7% and gas by 17.2%. EDF Energy also put up its electricity tariffs by 7.9% and gas bills by 12.9%. | Npower raised its electricity prices by 12.7% and gas by 17.2%. EDF Energy also put up its electricity tariffs by 7.9% and gas bills by 12.9%. |
Consumer watchdog Energywatch argues the gas and electricity market is not competitive enough and consumers are losing out. | Consumer watchdog Energywatch argues the gas and electricity market is not competitive enough and consumers are losing out. |
It recently called on the Competition Commission to investigate. | It recently called on the Competition Commission to investigate. |
CHANGES TO THAMES WATER BILLSBand Bedrooms 2007/08 2008/09 1 Studio/ one £245 £200 2 Two £245 £217 3 Three or more £245 £266 Source: Thames Water | CHANGES TO THAMES WATER BILLSBand Bedrooms 2007/08 2008/09 1 Studio/ one £245 £200 2 Two £245 £217 3 Three or more £245 £266 Source: Thames Water |
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