Water prices on the increase August 14th, 2008
After recent price increases by Centrica and other gas suppliers, it is now the turn of the water companies to announce future price rises. They have approached Ofwat, the water industry regulator, with details of how much they want to increase prices from 2010.
Thames Water looks set to post one of the highest rises at about 3% per annum above inflation. United Utilities is next as it plans to raise prices by 2.7% above inflation. Northumbrian Water and Anglian Water customers can expect to see increases of 1.3% and 0.7% respectively.
Customers of Severn Trent and Welsh Water will see the lowest rises. Severn Trent asked for rises “only slightly above inflation” while Welsh Water’s will not rise above inflation.
The increases will help fund future investment in new infrastructure, networks, treatment works and dealing with flooding. All very logical, but what about previous profits? Why cannot they use retained reserves for investment rather than passing the costs on to customers?
