Water bills to be slashed by £50
WATER bills for householders must be cut by £50 a year, according to the industry regulator.
Ofwat has ordered water companies to cut the average domestic bill by £50 – or 12 per cent – over the next five years.
The reduction before inflation is part of a price review conducted every five years and will vary between suppliers.
Northumbrian customers will enjoy on average 26 per cent off their current bill, while Hafren Dyfrdwy customers will be better off to the tune of just three per cent.
The move is part of Ofwat’s £51billion investment plan in the highly regulated sector and was revealed in a report out yesterday.
The regulator also demanded that leaks are cut by 16 per cent by 2025 as part of a £6billion cost-cutting exercise.
The package also includes £13billion for
“new and improved services that go above and beyond water companies’ day-today operations” of which a billion is for cutting the impact of flooding. It also includes a commitment from water companies to produce zero net carbon emissions by 2030. The framework comes into effect in April and follows draft proposals published earlier this year. Firms have previously warned they could challenge any orders made by Ofwat, but chief executive Rachel Fletcher said the tougher targets were for the benefit of both customers and the environment. She said: “It is a really good package that we are announcing today, with massive investment to improve services and the environment for the future
– in fact probably the greenest settlement we have ever put in place.”
Ofwat’s review has been welcomed by consumer groups.Tony Smith, chief executive of the Consumer Council for Water, said: “Most customers will see this as a good deal, but more must be done to make sure everyone can afford their bill and ensure there is sufficient investment in safeguarding these essential services long into the future. “Water companies have had it too good for too long.
“At first glance, it appears Ofwat has listened to our repeated calls for it to get tougher and tip the balance back in favour of customers.
“But we’ll be keeping a close eye on the performance of companies to make sure customers are not short-changed.”