Anglian Water, Southern Water, Wessex Water, Yorkshire Water, Affinity Water and United Utilities all announced today that they would not take up their full allowances for the final year of AMP5. The move was described as a “step in the right direction” by the Consumer Council for Water (CCWater).
Elsewhere in the market, companies were able to cut bills by bringing forward cash from the next AMP period. South West Water and Sembcorp Bournemouth Water cut bills with 3 per cent and 2.5 per cent decreases respectively.
CCWater welcomed the efforts from the majority of the water companies to rein in bills but said it was disappointed that Thames Water and water-only companies Bristol Water and Dee Valley are to increase bills above inflation.
Thames was the only one of the ten water and sewerage companies to increase bills above inflation, announcing a rise of 3.4 per cent.
Dame Yve Buckland, chair of the Consumer Council for Water, said: “While we are pleased some water companies have taken steps to curb bill increases, the vast majority of customers will still see an actual increase in their water bill at a time when many face difficult financial circumstances.
“Our most pressing challenge is to now make sure companies and Ofwat deliver prices for the next five years which are affordable and acceptable to customers.”
Overall, the average household water and sewerage bill will rise by £8 from £385 to £393.
In December ten companies proposed below inflation increases from 2015 to 2020 in their business plans submitted to Ofwat.
Pamela Taylor, chief executive of trade body Water UK said the announcement demonstrated that water companies were “in touch” with their customers.
“Companies will invest around £5bn in the next 12 months to ensure our drinking water quality will remain amongst the best in the world and our rivers and beaches become even cleaner. This investment also maintains well over 120,000 jobs in the UK and helps support regional economies,” she said.