30/06/08
In uncertain times in the financial markets, water companies in England and Wales have reported positive results.
While individual circumstances differ for each company, the
underlying results show that as a whole the sector continues to perform well: in delivering services to consumers; in investment to improve water quality and the environment; and in providing returns to the investors who fund the ongoing need for investment in the sector.
Water companies are required to meet service and environmental standards as efficiently as possible. If they succeed in keeping costs below the level assumed by Ofwat, the savings are shared between their customers and shareholders. This is a fundamental feature of the way in which the sector is regulated.
Sharing success in this way is the essence of incentive-based water regulation, and today's average water bill would be £100 higher without the efficiency savings made by the companies.
Contact: Rob Wesley
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