Water bill hike comes into force

The average water bill will rise by 29 a year from today, an increase of 11.8 per cent.

17:16 01 April 2005

The average water bill will rise by 29 a year from today, an increase of 11.8 per cent.

Industry regulator Ofwat approved the hike in order to fund vast improvements in the infrastructure of water supply.

Water companies are planning to invest 16.8 billion over the next five years to improve and update their service.

But consumer groups argue that the move is more likely to benefit shareholders rather than customers, particularly as it comes on the back of rising energy and petrol prices.

Admitting the price rises were likely to be unpopular, an Ofwat spokesman told the BBC that they were necessary and unavoidable.

"The bills are going up no than more necessary to protect the progress that companies have already made to customer services, drinking water and the environment," he explained.

However, the chairman of consumer group Watervoice, Maurice Terry, warned that this was just the latest piece of bad news for consumers.

"Customers are besieged by rising bills for energy, council tax and other services and sharp increases for water and sewerage could be the last straw," he said.

"The upward trend in the share prices of water companies indicates that the impending price increases are seen by the City as more favourable to investors than customers."