Water bills rise to £305
Millions of struggling Midland households face inflation-busting rises in their water bills, it was revealed today.
Both Severn Trent and South Staffs Water have been given the go-ahead to push their bills above the current three per cent rate of inflation in April. It comes as many people are fearing for their jobs as the economy is gripped by the recession.
The average Severn Trent customer's annual bill will go up £15 to about £305 next year, a rise of five per cent.
A South Stafforshire Water customer will see the water bill rise £4 to £123. South Staffs customers will also have to pay an extra £7, or £151 a year, for Severn Trent sewerage services.
Severn Trent Water is being allowed to increase its bills for the coming year by two per cent above inflation, while South Staffs Water is being allowed 0.6 per cent above inflation.
Water regulator Ofwat today defended the rises, saying they would have been higher if it had not set limits on water and sewerage companies.
Price caps agreed in 2004 last until next year.
Regina Finn, Ofwat chief executive officer, said: "We needed to make some tough decisions back in 2004 when we set prices.
"Further investment was vital, but we needed to strike a balance with keeping bills down. Our work has kept customers' bills around £100 lower than they would otherwise have been.
"No one wants to see bills increasing, particularly in tough economic times. Yet over the last 20 years we have made sure that this essential investment has delivered very real benefits for us all."
Mrs Finn said Severn Trent Water was expected to pump £2.6 billion into maintaining and improving its services between 2005 and 2010. So far, investment had meant better water pressure, a more reliable supply and cleaner drinking water.
South Staffs Water is investing £115 million
