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UK Water Bills/ Rates to Rise Above Inflation; Average Water Bill will be Allowed to Rise 4.1% Minimum; Scheduled for April 1 ‘09 (Reuters)

Feb.18, 2009 in Water Rates

(Feb. 18, 2009, Reuters)

Householders in England and Wales will face above-inflation increases in water bills this year, water regulator Ofwat said on Wednesday.

The regulator will allow water companies to impose average rises in household water and sewerage prices in 2009/10 of 1.1 per cent plus inflation at 3 per cent, it said in a statement.

The decision means the average bill across England and Wales will rise by about 4.1 percent, or 13 pounds, to 342 pounds ($483.7).

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, Ofwat said.

Among those firms supplying both water and sewerage services, South West Water, owned by Pennon Group Plc (PNN.L), will impose the lowest price increase including inflation, of 0.9 percent — meaning a real-terms decrease– while privately owned Southern Water will introduce the highest rise, of 5.6 percent — meaning its bills will rise 2.6 percent above inflation.

The regulator said it had tried to keep bills low while ensuring the industry continued to invest to modernise water networks and improve the environment.

“No-one wants to see bills increasing, particularly in tough economic times,” Ofwat Chief Executive Regina Finn said.

“Yet during the last 20 years, we have made sure this essential investment has delivered very real benefits.”

Watchdog the Consumer Council for Water said it had asked the government to provide more help to customers struggling to pay their water bills through the tax and benefits system. It said it was working with the government on a review of water charging and affordability.

Dame Yve Buckland, Chair of the Consumer Council for Water, said: “Any price increase will be a concern for customers in the current economic climate and we recognise many customers may struggle to keep up with these bill rises.”

The rises for this year will take effect on Apr. 1, 2009 and apply until Mar. 31, 2010. Ofwat plans to finalise new price limits for the period between 2010 and 2015 in November 2009.

“We will make sure consumers get a fair deal,” Finn said.

($1=.7071 Pound)

(Editing by Sharon Lindores)

(Original Article Here)