Northumbrian Water Issues Alert to Customers
While their charges are fixed until 2010 due to an agreement with OFWAT it seems that many customers of Northumbrian Water will see a sharp rise in their bills once the agreement runs out. The company has issued a statement confirming a major rise in energy costs and the need to make substantial investment into a number of areas, including flood prevention.
This is yet another blow to the under pressure UK consumer who has seen the cost of living rise significantly over the last couple of years. This announcement by the north of England based company is sure to be the first of many in the sector as the water companies’ jockey for position ahead of the current OFWAT agreement coming to an end.
Even though many can understand why the water companies might feel forced to increase charges, there is concern that these statements are often released at the same time as reporting yet more profits growth. Northumbrian Water announced a rise in profits of some 15.2% to £170.3 million at the same time as confirming that costs were under pressure. Many are questioning how the situation can be quite as bad while profits seem to be rising all of the time.
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