Thames Water bills to soar by 36%

THOUSANDS of Thames Water customers are being hit with inflation busting price increases from April with some bills rising by as much as 36%.

The price increase will hit around 50,000 customers who receive only their water from the German-owned company and not sewage services, such as those with septic tanks.

Customers who receive both services from Thames Water will see their bills rise by an average of 14%, plus inflation.

Consumer watchdog WaterVoice said price increases are being weighted towards the water side of the service to reflect the increased investment in that part of the business.

Kidlington based housewife Susan Walker is seeing her annual water bill increase from £186.70 last year to £252.43 from April.

She said: 'It's a complete slap in the face and the most annoying thing is there is nothing we can do about it. We can refuse to pay but then we will be cut off.' She added: 'I find it an astonishing increase and I wonder how many pensioners will be able to cope with it.'

Thames Water spokesman Nick Tennant said: 'Most of this year's investment is going to the water side of the business as we need to replace around 850 miles of Victorian pipes in London. A third of London's pipes are over 150 years old and the system is in urgent need of investment.'

The company estimates that a third of available water is lost in leakage every year and had argued to industry regulator Ofwat that all bills needed to rise by an average of 40%. The company is spending £3.1bn over the next five years updating the system.

Ofwat has only agreed to allow the company to increase overall prices by 24% over the next five years. The company's average bill will rise to £261, a £50 increase on today's figures, by 2009. The average bill for 2005-2006 will be £246.

Unlike gas and electricity, water customers cannot easily switch suppliers and are therefore stuck with the increases. Tim Wolfenden, product director with uswitch.com, said consumers could potentially cut their bills by switching to a metered account. Around 75% of households are currently unmetered and their bills are estimated on the size of the house.

He said: 'You have to work out whether switching to a metered account would benefit you. For example, two people living in a six-bedroom house would probably be better off because their rate would be based on all six bedrooms being used, but four people living in a two-bed house should probably remain unmetered.'