Water Bills To Drain UK Wallets

Thames Water bills are expected to have an annual rise of 3 percent more than inflation as water companies submit predicted finance plans for 2010 to 2015. (Cate Gillon/Getty Images)

Water bills are expected to go up by 4.5% a year according to business plans submitted to industry regulator Ofwat,for 2010-2015.

The funding of essential investments, and stringent European environmental legislation are cited as the causes.

The companies will submit final business plans next April after Ofwat gives its feedback later this year.

David Owens, the Chief Executive of the largest water company, Thames Water, said  “Thames’s customers have enjoyed the lowest bills in the industry for many years,” adding that London’s aging sewage system needed attention.

Southern Water, bought for 4.2 billion pounds last year by a consortium led by JP Morgan, hit its 4 million customers with the higher increase of 4.5 per cent.

United Utilities, focused more on north-west England, announced lower increases of just over 2 per cent a year between 2010 and 2015

“We have a legacy issue of regional investment as the north-west was one of the first areas to be industrialised,” a spokeswoman said, adding that projects such as a clean up of the river Mersey were particularly expensive.

Severn Trent, which has 8.2 million customers across the English Midlands, announced marginal increases above inflation, while Welsh Water said it envisaged no increase in average household bills over the same period, excluding inflation.