The Consumer
Council for Water is pleased that the regulator, Ofwat, seems to
have listened to customers when putting together its draft
decisions on water price limits in England and Wales from 2010 to 2015.
Ofwat is proposing that, before taking inflation into account,
bills reduce for many customers across England and Wales, bringing
the average annual water and sewerage bill down from £344 to £330
by 2015. However, because prices vary from company to company,
customers in different areas could face a range of price changes
from a reduction in average annual bills as much as 14 per cent,
to an increase in bills of 9 per cent before inflation over the
five years.1
Dame Yve Buckland, Chair of the Consumer Council for Water, said:
“This is the first time that the Consumer Council for Water, as an
independent body representing water customers, has been involved
in the price setting process. We have been negotiating hard,
pushing each water company and Ofwat to develop plans that will
deliver what consumers want at a reasonable price.
“We are pleased to see that by and large it looks as though Ofwat
listened to us and to customers when putting together draft
decisions on water prices. Today’s announcement should be seen as
reasonable by many customers.
“However, customers must remember that these are average prices,
so changes in water bills could vary from company to company and
customer to customer, depending on their circumstances. Over the
next month we will take time to go through Ofwat’s draft decisions
in detail to understand the full package of what customers are
getting.
“We would not want lower prices to mean an unacceptable reduction
in service to customers, and we want to be sure that those areas
consumers told us are their priorities have not been reduced, or
cut altogether from the companies’ plans, and that there are no
hidden surprises that could mean higher prices in the future.
“Even if prices are to go down overall, there is still
an issue of affordability for many water customers. When we ask
‘are your water bills affordable?’ one in five customers tells us
no. We are concerned that a reduction in prices still isn’t enough
to solve the problem, and we will continue to press government to
provide better support for these people.
“We will be asking customers what they think of Ofwat’s draft
decisions through customer research, and we would also welcome
anyone to give us their views by visiting www.ccwater.org.uk.
“We will make customers’ views known to Ofwat to make sure that
the regulator continues to take consumers’ priorities into account
when they make their final decision on prices in November.”
Notes for editors
1. Average water bills are an average of both metered and
unmetered customers. Price increases for individual customers may
vary, depending on how much water they use, if they have a water
meter, or if they do not have a water meter, the rateable value of
their home.
2. Today marks the third stage in a price setting process
which takes place every five years. Ofwat will evaluate feedback
on today’s draft decisions from each company, the Consumer Council
for Water and other stakeholders, and in November make a final
decision on the maximum amount water companies will be able to
charge their customers until 2015.
3. Company specific research into customers’ willingness to
pay is available at www.ccwater.org.uk/upload/pdf/PR09_Company_Report_England_Final.pdf.
4. The Consumer Council for Water was set up in October 2005
to represent consumers in England and Wales.
5. The Consumer Council for Water costs each water customer
about 25p per year.
6. The Consumer Council for Water has gained £135 million
from water companies in reduced prices and extra investments.
7. The Consumer Council for Water has to date taken up 60,000
consumer complaints about water and sewerage companies, and
secured £6 million in compensation and rebates for customers.
8. The Consumer Council for Water is a non-departmental
public body reporting to the Department of Environment, Food and
Rural Affairs and the Welsh Assembly Government. It has a
committee for Wales, and four committees in England.
9. Our website is www.ccwater.org.uk.
For public enquiries to the Consumer Council for Water, contact
via our phone number, 0845 039 2837, email on enquiries@ccwater.org.uk,
or minicom on 0121 345 1044.
Media contact: Amy Weiser on 0121 345 1006 or 07778 160808
Draft water company average bills 2009-10 to 2014-15 Figures
are taken directly from Ofwat’s draft determinations If
your having problems viewing the above table visit:
http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=405128&NewsAreaID=2&ClientID=276
Notes to Editors
Contacts:
NDS Enquiries
ndsenquiries@coi.gsi.gov.uk