Devon water bills reduced by Ofwat
HOUSEHOLD bills for Devon and Cornwall residents are set to be reduced today as Ofwat limits the prices firms can charge over the next five years.
The water industry regulator said in its draft document that it wanted South West Water bills reduced by an average of £12 by next year and by £30 a year by 2014-15.
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The reduction would still leave customers of the French-owned company, based at Pynes Hill in Exeter, with the largest water and sewerage bills in the country. They averaged £488 in 2009-10 and would average £458 for the year 2014-15.
Since July, when the draft recommendations were published, companies, customers and other interested parties have had the opportunity to present their views to Ofwat.
The regulator’s chief executive Regina Finn said: “We understand times are hard and we have listened to what customers have told us. They want a safe, reliable water supply at a reasonable cost.
“People can shop around for the best deal on many things, but not water. That’s why we’ve challenged the companies’ plans rigorously to ensure that customers get the best value for money.
“Our proposals allow the companies to build on the successes of the past, keep bills stable and create a better environment.
South West Water chief executive Chris Loughlin said the company had been recognised for its hard work in improving bathing waters, drinking water and tackling leakage.
His aim was to improve the service and make it more efficient over the next five years.
Historically South West Water bills have been the highest in the country because the privatisation of the water industry left consumers paying for infrastructure improvements in their region. The South West’s lengthy coastline and relatively low population caused costs to soar.
Anna Walker, chief executive of the Healthcare Commission, is leading an independent review of charging and metering for water and sewerage which is likely to recommend such costs are shared nationally.
Teignbridge Liberal Democrat MP Richard Younger-Ross welcomed the move but wanted it introduced retrospectively, so consumers in the county do not end up paying for improvements elsewhere while SWW’s multi-million-pound Clean Sweep programme is largely paid for.
He said: “The changes do need to happen but we will be petitioning the Government to ensure there is this retrospective element, so South West consumers do not lose out again.”
14 Comments
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by steve, Exeter
Thursday, November 26 2009, 6:10PM
“What else can you expect when a monopoly is left in charge?”
by Ed, Exeter
Thursday, November 26 2009, 5:40PM
“£52 per month???
Get a metre, and use less water.
You people think that everything should be free??
How do you think the water gets to your tap, and where does it go after you used it?
Do you want to swim in excrement when you go in the sea??”
by Mark, Exeter
Thursday, November 26 2009, 5:26PM
“It doesn't take a genius to guess that it's currently (generally) cheaper to have a water meter because the Water Authorities want to persuade everyone to have them. As soon as everyone pays for water this way, the prices will inevitably go up, probably very rapidly. Those of us with water meters are currently in a "honeymoon period" with lower charges whilst a substantial number of customers continue to pay "Water Rates". It won't last as long as the Water Companies (not just SWW) have to keep their shareholders happy...”
by JON KERS, exeter
Thursday, November 26 2009, 1:53PM
“I have read today average water prices in the severn trent region are £291 per year, quite a difference. But I am sure S.W.W. will come up with the usual reasons for the vast amount charged.”
by tim, Exmouth
Thursday, November 26 2009, 12:32PM
“I am a bit confused!
Given the way that water prices have risen over recent years, well above inflation, should the 'good news' be not that we may save a few quid on our bills, but that we will not have any more price rises until after 2015?
In 2006 I was paying £35 a month, now I'm paying £50.
A 'result' would be no more price rises.”
by Ben, Exeter
Thursday, November 26 2009, 12:30PM
“I appreciate the comment made by SWW but you are talking about 6 years time, this is a long time. we need to see decent reductions now. I switched to a meter and have barely noticed a change and we use minimal water its incredible actually how little we do use and are still paying similar to the charges we were paying when unmetered.”
by Stan Beale, Brixham
Thursday, November 26 2009, 12:26PM
“It is also worth a mention that unmeasured bills (for those not on meters) are to increase by 30%. The
example given by Ofwat is for a typical bill to go from £723 in 2009 to £935 in 2014.
We might also ask why there are no significant price cuts. In 2005-06 Pennon took £200 million as
dividend and in 2008-09 took £104 million. Is Ofwat maintaining prices so that Pennon can continue to
enjoy the huge dividends to which they have become accustomed?”
by Alice, Exeter
Thursday, November 26 2009, 12:02PM
“Thank you for replying South West Water and for the info.
In my flat the water supply is shared with the downstairs flat (this was discovered when the downstairs flat had a burst pipe and we had to have our supply switched off too) so I'm unsure whether we would be able to have a meter fitted which would obviously be preferable. My partner and I do not use a lot of water at all and my family in other parts of the country are appalled at how much we pay.”
by brin, Exeter
Thursday, November 26 2009, 11:59AM
“Great. Even (who I consider to be),the rip-off merchants have stepped into the debate. Big deal, SWW, big deal. Fact is we have been let down by our goverment on this, they should have stepped in and forced SWW to lower its prices to everyone in this region. The only person talking any sense in this appears to be Anna Walker of the Healthcare commission who is likely to recomend costs being shared more nationally. We have no choice but to buy our water from this firm. Ofwat have let us down too, as it is not enough of a reduction, this company is raking it in at the expense of some of the most vulnerable people in society and the government just look on.”
by South West Water, Exeter
Thursday, November 26 2009, 11:36AM
“We have been following the thisisexeter.co.uk debate keenly at South West Water and would like to clarify a few points over future prices.
Firstly, by 2015 we expect 87% of customers to be on meters. This means the average bill for the majority will be £407 in 2015. Only 13% of customers will be paying based on a rateable value charge.
If you are not on a meter, switching could help reduce your bill. People currently switching will save £380 from their annual bill.
You can have a meter installed free of charge ¿ provided we can install one that measures your water use and the cost of installation is not unreasonable ¿ and you can try it for 12 months and then switch back to unmeasured charges if you do not like being on a meter.
Simon of Exeter has also raised the interesting issue of the transfer of private sewers. At the moment we do not know the full implications for our region, but it is unlikely to have a huge effect on charges.
We¿d also like to reassure readers that we are not French owned and that Pennon Group is an Exeter-based company!”