Ofwat announce above inflation price increases to UK water bills.
UK water regulator Ofwat have today proposed increases to UK water bills that will see the average household paying out an extra £18 a year to cover the cost of their water supply.
The changes, to be implemented on the 1st April this year, will see prises rise 1.5% above inflation in an increase that will take the average household water bill from £312 to £330 a year.
The exact figures will however differ from water company to water company with the increases applied to combined bills varying from to 3% to 7.8%.
While this increase is unlikely to be welcomed by consumers, the rise is a carefully balanced one that is based on Ofwat’s assessment of the additional funds needed by water companies to continue to provide a good level of customer service.
Additionally, as Ofwat are responsible for setting prices in the water industry rather than leaving pricing decisions down to the individual water companies themselves, households have been protected from huge rises similar to those recently seen in the energy sector, potentially saving the average water consumer £100 on their bill.
Despite this, the increase does come at a time when many are struggling to meet the financial demands of household bills. In a statement Ofwat Chief Executive Regina Finn commented:
"With household bills generally going up – including increases in energy and council tax – we are aware that bill increases are difficult for some customers. Some customers, particularly those who are low users of water, would save money if they had a water meter installed. Fitting a meter is free of charge and people can find out from their water company whether they would benefit.”
She also added that Ofwat are currently exploring the possibility of introducing water tarrifs in an attempt to more accurately reflect actual usage without metering and make this essential utility more affordable for all.
