Water bills set to be reduced by 5% in 2020
12/12/2014
The average household water bill is set to fall by 5% in 2020, following a decision from industry regulator Ofwat.
In real terms, this means household water bills will fall on average from £396 to £376 over the next five years. Ofwat worked with the 18 water companies throughout England and Wales, and set prices and profits for them for the five year period. The new charges will come into effect in April 2015. Companies have two months in which to accept Ofwat’s so called “final determination”, or seek a referral to the Competition and Markets Authority (CMA).
Ofwat have also said that customers will see improved levels of service, with water companies spending more than £44 billion on improvements. These include improvements in the areas of pollution incidents, and further improvements to drinking water quality.
Ofwat have also confirmed that the number of people receiving financial support for their water bills will more than double to 1.8 million people by 2020.
Cathryn Ross, Chief Executive of Ofwat said:
“With bills held down by five per cent and service driven up over the next five years, customers will get more and pay less. Where companies stepped up to do the best they could for their customers we did not need to intervene. But where companies fell short we stepped in to make sure customers get a good deal. Now the hard work begins. Companies will only build trust and confidence with their customers if they deliver. Those who do can look forward to fair returns, while those that don’t will be hit in the pocket and face a tough five years ahead.”
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
UK utilities under pressure after Severn Trent shocks market
UK water utility company Severn Trent has today shocked the market with the announcement that falling commercial consumption will see revenues up to £25 million lower compared to last year, even though the company recently forecast a decline of just £15 million. This announcement has spooked investors and spooked the market at a time when utilities were seen by many as a safe haven in these stor...
Read MoreAre smart meters just another form of Big Brother is watching you?
Over the last few years we have seen microchips stapled to the bottom of our wheelie bins, the introduction of CCTV cameras on every corner of every street (the UK has the most CCTV cameras in the world per square mile) and more and more onerous laws and regulations so the authorities can keep an eye on us. Would a smart meter be another way for the government, the energy companies and the regulat...
Read MoreConsumer confidence hits a new low on the UK high streets
Over the last few days we have seen a number of consumer surveys which have indicated a further fall in consumer confidence in the UK. This news together with recent confirmation that life is tough on the high street does not bode well for the UK economy in the short to medium term. This drop in confidence has been further exacerbated by a rise in the unemployment numbers in the UK with many feari...
Read MoreSainsbury's taken to court in packaging row
Supermarket giant Sainsbury's is today facing court action by trading standards officers from Lincoln in relation to obscure environmental laws which limit the amount of packaging which can be used when manufacturing and selling goods. The company is accused of breaking 2003 regulations which dictate the amount of packaging which can be used as authorities around the UK look to reduce waste, rubbi...
Read MoreHow often do you review your financial affairs?
While we all read the financial press, the headline news, how many of us actually review our financial affairs on a regular basis?
Research has shown that that more and more people in the UK are happy to leave their financial affairs untouched from year to year which in the long run will actually cost money. Unless you make your money work for you and do as much as possible to reduc...