The Consumer Council for Water (CCWater) says today’s (Wednesday) draft decision on South West Water’s price limits for 2015 to 2020 is good news for customers who have faced the highest water bills in the country.
Regulator Ofwat has announced that it believes South West Water’s average annual household bill for water and sewerage should fall before inflation from £516 in 2014/15 to £479 by 2020. Ofwat will make a final decision in December.
These prices are before the £50 Government subsidy, which is currently given to all South West Water household customers, has been taken into account1.
But customers are still likely to see an actual increase in water and sewerage bills by 2020 depending on the level of inflation over the next few years. And new regulatory incentives for South West Water could also have some effect on future bills.
Dennis Osborne, local consumer advocate for CCWater, said: “We’ve challenged South West Water to listen to its customers’ concerns on value for money and affordability. The company has responded well and its plans mark further progress towards addressing the high bills customers have faced over many years.”
CCWater is pleased South West Water has also put plans in place to share net gains with its customers.
1 Since April 2013, household customers of South West Water have received a Government subsidy on their water bills, which reduces it for each customer by £50 per year.