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Water bills set to be reduced by 5% in 2020


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.”

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