Bills for Northumbrian water customers will rise above inflation, the supplier's chief executive has suggested.
Water bills might rise at an above-inflation rate in months to come, the head of a major supplier has warned.
John Cuthbert, chief executive of Northumbrian Water, made the comments while announcing full-year profits from the company of £170 million: a 15 per cent rise over 2007's total. "We'd like to keep water bills as close to inflation as we can," he said, adding that this would prove a "challenge" in the current financial climate.
"Regulatory outputs have been delivered, although sewer flooding continues to be a challenge as a result of the increasing incidence of severe localised storms," Mr Cuthbert added. "The strong operational and financial performance reported in the first six months has been carried through to the full year."
Higher energy prices, which Northumbrian claims will add eight per cent to its operating costs over the course of this year, were blamed for the potential bill increases.
More locally, the supplier is also spending £140 million on expanding a reservoir in Essex, with costs predicted to be passed on to customers.
The firm currently supplies water and sewerage services to around 2.6 million Britons in the north east, along with a further 1.7 million in the south east through its subsidiary Essex & Suffolk Water.
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