Welsh Water has announced its customers will see an average price rise of 3.8% – the lowest increase in England and Wales.
Nigel Annett, the managing direcor of the not-for-profit company, based in Nelson, said Welsh Water is investing £1.4 billion in infrastructure over the five years.
He said: “We are working to give our customers the best possible value-for-money service, while providing the highest quality tap water, reducing the risk of sewage flooding, and protecting our environment. The investment to protect coastal waters and rivers has helped gain Wales a third of the UK’s Blue Flag beaches, while our rivers are the best in the UK.”
In 2009 Ofwat made its decision on how much water and sewerage companies could charge customers between 2010 and 2015 to help them fund £22billion of improvements.
Regina Finn, Ofwat Chief Executive Officer said: “When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. We challenged companies hard to deliver this. Our decision meant that, before inflation, average bills would remain broadly stable between 2010 and 2015.
“We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills, and this is driving these rises.
“We will make sure customers get value for money. Companies are investing £22 billion by 2015 – more than £935 for every property in England and Wales. This will deliver benefits to us all – from continuing to improve reliability of supplies to cleaner rivers and beaches.
“If companies don’t deliver on their investment promises, we will take action.”
Dame Yve Buckland, Chair of the Consumer Council for Water, said: “Under the system of regulation, water companies are allowed to add inflation to the price limits agreed with Ofwat.
“However, in the current economic climate, many customers are struggling with rising household bills and the level of water debt is growing.
“Companies need to tell their customers very clearly what they are getting for their money and to help customers who are having difficulty paying their bill.
“We will be working with companies and the regulator throughout the next price review to ensure that future water prices are acceptable and affordable. We will also applaud those companies who are currently exploring different ways of mitigating the impact of inflation on their customers.
“Anyone struggling to pay their water bill should contact their company immediately. They can usually offer more flexible payment options, such as weekly or monthly payment plans. In some cases they may also be able to help through special assistance funds, or schemes to help eligible customers reduce their water bills.”