Average water bills to drop

Thu Nov 26 2009 07:35:18

Water watchdog Ofwat has announced its final decision on prices, calling for average household bills to be reduced by around £3 to £340 before inflation between 2010 and 2015.

The regulator had called for a 4 per cent cut in average bills in July, pressing water firms in England and Wales to reduce prices by an average £14 to £330.

The demand sharply contrasted with final business plans submitted to Ofwat by water companies in April, which pushed for average price increases of £31 before inflation.

Ofwat challenged the water companies' plans "vigorously" to demand greater efficiencies and also called for £21 billion to be spent on maintaining and improving the network.

While Ofwat is focusing on protecting consumers, some companies could appeal to the Competition Commission if they judge the settlement too harsh.

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