Household Water Bills To Rise By 3.5%

The average household water and sewerage bill in England and Wales is set to increase by 3.5%, regulator Ofwat said.

The average cost of a water and sewerage bill will rise to £388 from April 2013 to March 2014 - 0.5% above the rate of inflation.

Customers in southeast England face the biggest rise of  £23 a year.

The South West is close behind with a £22 increase, while families in Yorkshire will pay around £12 more a year.

Customers' bills are helping to pay for a £25bn investment programme to improve the water supply.

Ofwat chief executive Regina Finn said: "Back in 2009, companies wanted bills rises of 10% above inflation.

"That didn't chime with what customers told us they wanted, so we said they could only increase bills in line with inflation.

"We understand that there is huge pressure on household incomes, and any rise is unwelcome. Inflation is driving these increases.

Ms Finn said the regulator will ensure companies keep their promises on investments.

"We will make sure customers get value for money and if companies fall short in delivering their investment promises, we will take action," she said.

"In the past seven years, we have made companies pay out around £550m where they have under performed."

The new charges will vary for households depending on their supplier and whether they have a water meter, Ofwat said.

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