Water UK briefing
30 January 2012
The level of water bills in England and Wales for 2012-13 will be announced by Ofwat, the water regulator, on 31 January 2012, as the water industry delivers the next phase of its five-year investment programme to maintain and improve services. This briefing provides background information.
Water companies boosting local economies
Water companies are boosting local economies
Water companies don’t just pump water into the regions in which they operate – they pump millions of pounds every day into their local economies
Water companies are providing a crucial boost to local economies in all parts of the country. Regional water companies support thousands of local businesses and tens of thousands of jobs at all skill levels. For every £1 invested by a water companies in the local economy, the knock-on effect can be almost double, providing a ‘ripple effect’ boosting regional GDP.
Unlike many other sectors, water companies are creating new jobs to deliver their massive investment programme to maintain and improve services to customers.
Investing for the future
Water companies are investing about £1,000 per property, to keep water flowing now and in the future
Water companies are now half way through a £22 billion investment programme so that customers can continue to rely on their water and sewerage services, now and for decades into the future. This includes:
• Over 10,000 km of water mains being improved or replaced – more than the distance from London to Cape Town
• Improvements to 140 water treatment works and 550 sewage treatment works to maintain and improve the environment and drinking water quality
• Making more than 3,000 km of rivers cleaner
• Focusing on customer priorities like reducing discoloured water and preventing sewer flooding
Providing essential services, 365 days a year
Water companies provide one of the essentials for life, safe and reliable drinking water, for about £1 per day
Our customers can rely on us to provide high quality drinking water, and to take away used water, 365 days a year. Our water is amongst the best in the world, meeting exacting quality standards year after year – for about £1 per day.
Keeping bills as low as they can be
Water companies’ plans are scrutinised closely to ensure that bills are as low as they can be
Every five years, water companies’ long-term plans to deliver water and sewerage services are reviewed thoroughly to ensure that the plans will deliver what customers want, what is needed for the environment – and that bills are as low as they can be. The last review finished in November 2009, when prices were set for the period up to 2015.
This review is led by the independent economic regulator, Ofwat, and involves all the key organisations for water – the Consumer Council for Water, representing consumers, the Environment Agency, safeguarding the quality of the environment, and the Drinking Water Inspectorate, protecting drinking water quality, as well as water companies themselves.
Water bills vary across the country – because the cost of providing water and sewerage services varies across the country – but all companies have to get more efficient year on year to meet the tough efficiency targets that are set by Ofwat.
Each year, companies set their charges by adding inflation to the price limits set by Ofwat. Inflation must be added each year as Ofwat could not predict what the inflation rate would be today when it set prices back in 2009. This year, inflation is 5.2%. Ofwat has to approve each company’s charges each year – water companies can’t change their prices without approval from Ofwat.
Helping vulnerable customers
Water companies know that some customers find their water and sewerage bills hard to afford, and can do many things to help
With many household bills going up, water companies know that for some, water bills will be hard to afford. There is much that water companies can do to help customers who need assistance – for example companies offer flexible payment plans, assistance through charitable trusts and restart plans, and fund support via debt advice agencies.
Any customer who is finding their water bill difficult to pay should contact their local company to see what help is available, rather that let a problem build up.
