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05/11/2003
Ofwat gives go-ahead to 8% price rises
Water charges are set to soar in northern England by more than 8% if – as seems likely – Ofwat gives operators the green light to increase charges.
Last month, United Utilities applied to the regulator for an increase to their original price limit of 4.5% above inflation for 2004-05. The water industry regulator Ofwat said today that it may allow United Utilities to increase charges by 8.2% above inflation from April 2004.
The company claims the application to increase the price is necessary to cover funding issues including rises in construction industry costs and customer debt.
Ofwat's draft decision published today would see the average bill in the North West rise by £27 plus inflation next year. This is subject to public consultation and a final decision is expected to be made by Ofwat on December 11.
WaterVoice North West has called for customers' ability to pay to be at the forefront of future decisions on investment in the water industry.
WaterVoice North West Chairman Maurice Terry said: "We will be discussing the draft decision with Ofwat and will need to be satisfied, on behalf of customers, that this increase is unavoidable."
Customers also face the prospect of further major price increases between 2005 and 2010 to pay for extensive environmental improvements identified by government. They are due to give final guidance on these requirements early next year.
Mr Terry added: "The willingness and ability of water customers in this region to keep paying increased charges cannot be assumed.
"Affordability must be a primary consideration when decisions are taken on the scale and pace of further investment in the region's water environment."
(gmcg)
Last month, United Utilities applied to the regulator for an increase to their original price limit of 4.5% above inflation for 2004-05. The water industry regulator Ofwat said today that it may allow United Utilities to increase charges by 8.2% above inflation from April 2004.
The company claims the application to increase the price is necessary to cover funding issues including rises in construction industry costs and customer debt.
Ofwat's draft decision published today would see the average bill in the North West rise by £27 plus inflation next year. This is subject to public consultation and a final decision is expected to be made by Ofwat on December 11.
WaterVoice North West has called for customers' ability to pay to be at the forefront of future decisions on investment in the water industry.
WaterVoice North West Chairman Maurice Terry said: "We will be discussing the draft decision with Ofwat and will need to be satisfied, on behalf of customers, that this increase is unavoidable."
Customers also face the prospect of further major price increases between 2005 and 2010 to pay for extensive environmental improvements identified by government. They are due to give final guidance on these requirements early next year.
Mr Terry added: "The willingness and ability of water customers in this region to keep paying increased charges cannot be assumed.
"Affordability must be a primary consideration when decisions are taken on the scale and pace of further investment in the region's water environment."
(gmcg)
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13 September 2013
Ofwat To Challenge Thames Water Increase Request
Water regulator Ofwat has said it will challenge Thames Water's request to increase customer bills by as much as 8% from next year. The increase could see an additional £29 added to an annual average household bill. The regulator has said it will assess Thames's application in order to determine whether the increases are justified.
Ofwat To Challenge Thames Water Increase Request
Water regulator Ofwat has said it will challenge Thames Water's request to increase customer bills by as much as 8% from next year. The increase could see an additional £29 added to an annual average household bill. The regulator has said it will assess Thames's application in order to determine whether the increases are justified.
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Thame's Water Additional Price Increase Is Turned Down
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Ofwat has turned down Thames Water's application for an additional price increase for 2014-15. Within the three month timescale for assessing the application, Ofwat found that the evidence the company submitted did not justify its proposed £29, or 8%, additional increase in customers' bills.
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19 August 2003
Ofwat warns customers over rise in charges
Ofwat has today warned the water industry that customers would find it hard to accept “substantially above-inflation rises” in water and sewerage bills following the 2004 Price Review.
Ofwat warns customers over rise in charges
Ofwat has today warned the water industry that customers would find it hard to accept “substantially above-inflation rises” in water and sewerage bills following the 2004 Price Review.
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