Water prices could rise above rate of inflation

Ofwat.gifWater prices could surge above the rate of inflation between 2010 and 2015, if regulator Ofwat allows them to go ahead with price increases. The companies will submit bids for the next pricing round today (August 11).

Thames Water, the UK’s biggest water company, says it expects bills to rise by 3% a year, above inflation, from 2010 to 2015. United Utilities plans to raise its prices by 2.7%, also above the rate of inflation.

Welsh Water says its average household prices will only rise at the rate of inflation during the 2010 to 2015 period.

The companies also plan to invest billions of pounds in protecting the quality of the water, supporting new infrastructure, improving water treatments and reducing the risk of repeat sewer flooding to properties.

Thames Water says its £6.5bn investment plan will be the largest spending programme ever carried out by a UK water company.

Ofwat will examine the draft business plans in detail to check levels of service and investment. The regulator will make its final decision by November 2009.

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