Water Prices 'Will Rise Above Inflation'

By Jayne Davison
Published on 11 Aug 2008
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Water Prices 'Will Rise Above Inflation'

Tap water will become noticably more costly for most, latest company data from suppliers shows.

Britain's water suppliers have announced their plans for future bill rises today.

Most of the providers say that they will increase costs above inflation for at least part of that time. The firms are obliged by the industry regulator, Ofwat, to submit their pricing and expenditure expectations at five-year intervals.

United Utilities indicated that it will enforce increases of 2.7 percent above inflation, while Thames Water has announced a slightly higher three percent increase. Elsewhere, Northumbrian Water says that prices will be 1.3 percent above, and Welsh Water signalled that it will only charge at inflation from 2010.

However, these price changes will only go ahead if the watchdog approves the plans. A decision is expected from Ofwat next year.

Speaking to BBC Radio 4, director of regulation at Thames Water Peter Antolik said that the extra money was needed in order for the firm to properly invest in updating and expanding infrastructure. "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."

The firm also indicated that its investment plan until 2013 comes to £6.5 billion. Elsewhere, Welsh Water said that it would spend £1.5 billion, while for United Utilities this figure was £4 billion.

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