Water bills set to soar 70%

WATER bills in parts of the country could soar by 70% over the next five years, it has been revealed.

A report from water regulator Ofwat showed that bills are set to rocket if privatised companies are given free rein.

The average amount would rise by just over 30% between 2005 and 2010, taking the figure from £234 to £306.

But millions of families in the North West and other areas face even steeper increases in bills which have risen sharply since privatisation in 1990.

Customers of United Utilities would see demands go up from £243 to £416, an increase of £173 or 71.2%.

Further big increases of at least 35% are threatened for the customers of Southern Water, Anglian Water and Northumbrian Water.

The firms insist huge price rises are needed to repair ageing sewers and mains, and to improve the quality of drinking and river water.

However, consumer groups condemned the proposed rises, saying they would hit poorer families and pensioners particularly hard.

Watervoice, the official customer body, said planned works range from welcome investment to prevent sewer flooding and improve the reliability of pipes and sewers, to compliance with little-understood European legislation such as the Shellfish Waters Directive.

Chairman Maurice Terry said: 'The bill for environmental improvements should be shared between everyone who benefits, and not funded exclusively, as now, by water customers.

'Under current arrangements, too many water customers will be paying too much for improvements which have too little benefit for them.

'For example, how many pensioners do we see surfing in wetsuits off the Cornish coast? Yet pensioners in the South West are facing a 22% rise in average water bills.'

He added: 'The bill for Network Rail and the main line upgrades do not fall exclusively on the customer base since they are regarded as a national priority and are funded appropriately. The most recent figures were £3.6bn for rail ticket sales compared to Government subsidy of £3.8bn. Why is water different?'

Ofwat warned of hefty rises in water bills if improvement programmes, likely to cost £20bn, are confirmed. Its director-general, Philip Fletcher, who will have a key role in deciding prices, said: 'Hard choices will have to be made about the size of the programmes the firms are expected to carry out if we are to set price limits recognised by customers as appropriate and necessary.

'Ministers will have some difficult decisions on whether all of the proposed drinking water quality and environmental improvements are essential.

'If the programmes of works which each company will be expected to deliver remain unchanged from those set out in the draft business plans then there can be little doubt water bills will need to rise substantially.'

Pamela Taylor, chief executive of Water UK which represents the firms, defended the increases. She said: 'The industry has achieved significant success, reflected in dramatic improvements in rivers, bathing water, drinking water quality and in our capacity to disappoint cynics expecting hosepipe bans in the heatwave at the start of the month. To secure this success we need to continue to invest. We can't let things slip.'

Ofwat will announce what it believes the price rises should be in July next year.