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Water and Sewerage bills to rise by 1.1 per cent above inflation in 2009/10
- 20 years of investment sees leakage down 35 per cent, and salmon return to the Mersey -
- From London to Auckland - 20,000km of water mains to be replaced or renewed over five-year period -
The average household water and sewerage bill across England and Wales is set to rise by 1.1 per cent above inflation in 2009/10.
In 2004, Ofwat set limits on the prices water and sewerage companies could charge customers between 2005 - 10. The rises for this year will come into effect on 1 April 2009 and apply until 31 March 2010. Ofwat will finalise the new limits on prices for the period 2010 - 2015 in November 2009.
Regina Finn, Ofwat Chief Executive Officer said:
"We needed to make some tough decisions back in 2004 when we set prices. Further investment was vital, but we needed to strike a balance with keeping bills down. Our work has kept customers' bills around £100 lower than they would otherwise have been.
"No one wants to see bills increasing, particularly in tough economic times. Yet over the last 20 years we have made sure that this essential investment has delivered very real benefits for us all.
"Our polluted rivers and beaches meant we were viewed as the dirty man of Europe. Now we have more than 120 Blue Flag beaches. The Mersey was known as the most polluted river in Western Europe but now is home to breeding salmon. Leakage has fallen by over a third since 1995, while the quality of our drinking water is now up there with the best in the world."
The average increase in household bills in 2009/10 is 1.1 per cent plus inflation at 3 per cent. This means the average household water and sewerage bill across England and Wales will rise by approximately 4.1% or £13 to reach £342 in 2009/10.
The impact of the new charges will vary for individual household customers depending on the company that supplies them and whether or not they have a water meter.
During the 2005-10 period water and sewerage companies are projected to invest around £20 billion in maintaining and improving water and sewerage services. This is part of an estimated £80 billion worth of investment by water and sewerage companies between 1989 and 2010. Water and sewerage companies were privatised in 1989.
Regina Finn said:
"We have made significant steps forward over the last 20 years. Yet the challenges of the future are different to those of the past.
"We are due to finalise prices for the 2010-15 period at the end of this year and we will make sure that consumers get a fair deal."
Over the last 20 years, key achievements within the water and sewerage sector include:
* Between 2005 - 2010 water and sewerage companies in England and Wales are in the process of laying, renewing or relining approximately 20,000km of water mains - more than enough pipes to stretch from London to Auckland. 2
* The proportion of properties at highest risk of sewer flooding has reduced by more than 75% in the last 10 years.3
* Leakage is down by 35% since its peak in the mid-1990s.
* The number of beaches in England and Wales recommended for excellent water quality by the Marine Conservation Society's (MCS) Good Beach Guide has increased by almost 90% between 1998 - 2008. 380 beaches were recommended by the MCS in 2008.
* In 1990, only around 78% of England and Wales's bathing waters met the minimum standards. In 2008 this figure had risen to 97%.
* In 2007, 72% of English rivers were rated either good or excellent compared with 55% in 1990; 87% in Wales compared with 79% in 1990. Successes include the River Mersey, where breeding salmon have returned after a more than 80 year absence to what was once known as Western Europe's most polluted river.
* In 2007, overall compliance with the drinking water standards in England and Wales continued to be very high at 99.96%.
Average household bills in 2009/10a
Company Water Sewerage Total change
value change value change value change
£ £ £ £ £ %
Water and sewerage companies
Anglian Water 174 7 219 10 17 4.6%
Dwr Cymru 170 6 233 11 17 4.3%
Northumbrian Water (incl. Essex & Suffolk)
Northumbrian 130 2 168 4 7 2.2%
Essex & Suffolk b 168 4 4 2.3%
Severn Trent Water 153 7 151 7 15 5.0%
South West Water 206 7 283 -2 4 0.9%
Southern Water 127 4 243 15 20 5.6%
Thames Water 178 4 117 3 7 2.4%
United Utilities 172 7 205 11 19 5.3%
Wessex Water 202 8 210 12 20 5.1%
Yorkshire Water 153 4 177 9 13 4.0%
Change
(water only)
Water only companies £
Bournemouth & West Hampshire Water 136 -3 -3 -1.8%
Bristol Water 157 5 5 3.4%
Cambridge Water 116 3 3 2.9%
Dee Valley Water 130 4 4 3.2%
Folkestone & Dover Water 182 -1 -1 -0.3%
Mid Kent Water 171 13 13 7.9%
Portsmouth Water 92 3 3 3.5%
South East Water 169 5 5 3.0%
South Staffordshire Water 123 4 4 3.6%
Sutton & East Surrey Water 161 2 2 1.1%
Tendring Hundred Water 176 3 3 1.6%
Three Valleys Water 166 5 5 3.1%
Total change
Industry average 163 5 180 8 13 4.1%
a) The % included in this table includes a rate of inflation of 3 per cent.
b) The % change for Essex and Suffolk is for water only bills.
Please note: some % figures may not add up due to rounding
-ends-
Notes to Editors
1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.
2. The distance from London to Auckland is approximately 18,500km
3. 0.12% of properties across England and Wales were at risk of sewer flooding incidents (twice in ten years and once in ten years) in 1997 - 98. By 2007 - 08 there were only 0.03% properties at risk. Approximately £1billion is being invested between 2005 - 2010 to reduce the number of properties considered to be at risk of internal flooding from overloaded sewers.
4. Blue Flags are awarded to coastal destinations which have achieved the highest quality in water, facilities, safety, environmental education and management. In 2008 there were 81 in England and 46 in Wales (41 beaches and 5 marinas). There were therefore a total of 122 Blue Flag beaches and five marinas across England and Wales in 2008.
5. During the 2005-10 period, water and sewerage companies are projected to invest around £20 billion in maintaining and improving water and sewerage services. This figure is based on actual spend to 31 March 2008 and projected expenditure for 2008-09 and 2009-10 as forecast by companies in their draft business plans as submitted to Ofwat in August 2008. This figures relates to 2007/08 prices.
6. Bill increases have been rounded to the nearest whole £ (for example, an increase of £3.82, will be written as an increase of £4). Some % totals may therefore not add up due to rounding
7. The rate of inflation is taken from the Retail Price Index (RPI) in November 2008. RPI in November 2008 was 3%
8. Media enquiries to Ofwat Press Office on:
Benedict Fisher on 0121 625 1442 / benedict.fisher@ofwat.gsi.gov.uk
Or
0121 625 3662/ 1416 / 1496 / pressofficeteam@ofwat.gsi.gov.uk
