Of water and sewerage companies (WaSCs), Southern Water is making the biggest hike, of 8.2 per cent. Of water only companies (WoCs), Bristol Water is claiming the highest rise, with 8.8 per cent.
Welsh Water is the WaSC with the smallest price rise, of 3.8 per cent. Veolia Central has the lowest hike of the WoCs, of 1.8 per cent or £3 on the average bill.
Regina Finn, Ofwat chief executive officer, said: “When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. We challenged companies hard to deliver this. Our decision meant that, before inflation, average bills would remain broadly stable between 2010 -15.
“We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills, and this is driving these rises.
Finn promised Ofwat would make sure customers got value for money and added: “If companies don’t deliver on their investment promises, we will take action.”
Ofwat pegs price limits to the Retail Price Index (RPI), which stood at an uncommonly high 5.2 per cent in November 2011, when charges were calculated.
Thames Water claimed less of an increase from customers than the maximum sanctioned by Ofwat, passing on savings made from borrowing instead of issuing shares.
Thames Water was allowed to raise prices by 4.6 per cent above inflation (9.8 per cent) but is settling for RPI + 1.5 per cent (6.7 per cent).
A table of average bill increases for all water companies can be found on Ofwat’s website here: http://bit.ly/y2AM6p.